Is Ashland, Inc. overvalued or undervalued?

As of 30 April 2025, the valuation grade for Ashland, Inc. has moved from fair to risky, indicating a significant deterioration in its financial standing. The company appears to be overvalued given its current metrics, particularly with a price-to-book value of 0.90 and an EV to EBITDA ratio of 8.30, which are not compelling compared to its peers. Notably, Ashland's return on equity (ROE) stands at -2.42%, highlighting ongoing challenges in generating profit relative to shareholder equity.
In comparison to its peers, Lancaster Colony Corp. has a P/E ratio of 25.39 and an EV to EBITDA of 15.80, while Flowers Foods, Inc. shows a fair valuation with a P/E of 13.69 and an EV to EBITDA of 10.13. These ratios suggest that Ashland is lagging behind its competitors significantly. Additionally, the company's poor stock performance, with a year-to-date return of -30.02% compared to a 2.44% return for the S&P 500, further reinforces the notion that Ashland is overvalued in the current market environment.