On September 16, 2026, FormFactor Inc FORM shares rose 3.1% to a current price of $104.82, despite experiencing a substantial decline of 20.4% over the past month. The stock has fluctuated significantly within the past year, with a 52-week range of $31.05 to $160.27.
- GF Value™ verdict: FORM is currently priced at $104.82, which is 78.7% above the GF Value™ estimate of $58.67, indicating significant overvaluation.
- GF Score™: With a score of 70/100, FORM is categorized as Above Average, reflecting a combination of strengths and weaknesses across various metrics.
- Notable signal: Financial Strength has been rated a perfect 10/10, indicating a robust balance sheet.
Is FORM Overvalued or Undervalued?
The current valuation of FormFactor Inc FORM indicates that the stock is significantly overvalued. The GF Value™ is calculated based on historical trading multiples, past business growth, and future performance estimates, arriving at a fair value estimate of $58.67. With the stock trading at $104.82, investors face a margin of safety of -78.7%. This overvaluation signals potential risk for investors, as the current price may not be justified by the company’s underlying fundamentals.
Given the GF Valuation label of "Significantly Overvalued," this assessment reinforces the concerns surrounding FORM’s market price. The substantial gap between the current trading price and the intrinsic value suggests that the stock may be subject to correction, especially in a market characterized by volatility.
How Does FORM's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 71.8x | 41.8x |
| Forward P/E | 28.0x | N/A |
FORM's current P/E ratio of 71.8x is significantly higher than its 5-year median P/E of 41.8x, indicating that the stock is trading at a premium compared to its historical valuation. This analysis aligns with the GF Value™ verdict of overvaluation, as the elevated P/E reflects investor expectations that may not be supported by the company's actual growth and earnings performance.
What Does FORM's GF Score™ Tell Us?
The GF Score™ is a comprehensive measure that evaluates a stock’s financial strength, profitability, growth potential, valuation, and momentum. FormFactor’s score of 70/100 signifies that while it possesses several strengths, there are areas of weakness that investors should consider.
| Metric | Rating |
|---|---|
| GF Score™ | 70/100 |
| Financial Strength | 10/10 |
| Profitability | 7/10 |
| Growth | 8/10 |
| Valuation | 1/10 |
| Momentum | 3/10 |
The analysis of FORM's GF Score™ reveals that its strongest area is Financial Strength, with a perfect rating of 10/10, indicating a solid balance sheet and low financial risk. However, the weakest area is Valuation, scoring only 1/10, which echoes the concerns regarding the stock's current price being excessively high relative to its intrinsic value. This combination of strengths and weaknesses provides a nuanced view of the company's overall health and investment potential.
What Are Gurus and Insiders Doing with FORM?
Currently, 11 gurus hold shares of FormFactor Inc, with 7 adding to their positions and 5 trimming their holdings in recent quarters. This mixed activity suggests a divided sentiment among professional investors regarding the stock's future prospects.
In contrast, insider activity has been predominantly negative, with insiders selling $20.2 million worth of shares over the past 12 months and no reported purchases during this period. This selling may raise red flags for potential investors, as it could indicate a lack of confidence from those closest to the company.
What This Means for Investors
In summary, FormFactor Inc FORM is currently overvalued based on the GF Value™ assessment, which highlights significant risks associated with its current market price. The high P/E ratio, coupled with a lack of insider buying, further underscores caution for potential investors. For more detailed insights, visit the FormFactor Inc (FORM) stock page and consider exploring the GF Value™ page for additional context.
Frequently Asked Questions
What is FORM's GF Score™?
FORM has a GF Score™ of 70/100, indicating it is categorized as Above Average, reflecting a mix of strengths and weaknesses across key financial metrics.
Is FORM overvalued or undervalued?
FORM is currently overvalued, with a GF Value™ of $58.67, suggesting that the stock price is significantly higher than the intrinsic value estimated by GuruFocus.
What is FORM's P/E ratio?
FORM's P/E ratio is 71.8x, which is substantially above its 5-year median of 41.8x, indicating that the stock is trading at a high premium compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
