Is Avantor, Inc. overvalued or undervalued?

As of 1 August 2025, the valuation grade for Avantor, Inc. has moved from very attractive to attractive, indicating a shift in its perceived value. The company appears to be overvalued given its current P/E ratio of 11, which is higher than the peer average of approximately 11.82 for similar companies like NewMarket Corp., which has a P/E of 16.30. Additionally, Avantor's EV to EBITDA ratio stands at 11.44, closely aligning with its peers but still suggesting limited upside potential compared to the industry.
In terms of performance, Avantor's PEG ratio of 0.16 indicates strong growth relative to its price, yet the overall valuation metrics suggest caution. With a return of -52.48% over the past year compared to the S&P 500's 17.14%, the stock's performance has significantly lagged behind the benchmark, reinforcing the notion that it may be overvalued at its current price of 12.86.