Is Avantor, Inc. overvalued or undervalued?

As of 25 April 2025, Avantor, Inc. has moved from a fair to a very attractive valuation grade, indicating a significant improvement in its perceived value. The company is currently considered undervalued, with a P/E ratio of 11, which is notably lower than its peers such as Westlake Corp. at 20.43 and ChampionX Corp. at 15.99. Additionally, Avantor's PEG ratio stands at an impressive 0.16, suggesting strong growth potential relative to its price.
In terms of key financial metrics, Avantor has an EV to EBITDA of 11.44 and a ROE of 12.74%, which further supports its undervaluation status when compared to industry standards. The company's recent performance has been challenging, with a year-to-date return of -36.26%, contrasting sharply with the S&P 500's gain of 2.44% during the same period. This divergence highlights the potential for recovery and growth in Avantor's stock, reinforcing the argument for its undervalued status.