Is Avantor, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Avantor, Inc. has moved from expensive to attractive, indicating a shift in perception towards the stock's value. Based on the current metrics, Avantor appears to be undervalued, with a P/E ratio of 11, significantly lower than the peer average of approximately 11.82 for similar companies. Additionally, the PEG ratio stands at an impressive 0.16, suggesting strong growth potential relative to its price, while the EV to EBITDA ratio of 11.44 is competitive within the industry.
In comparison to its peers, NewMarket Corp. has a P/E of 16.30, and ChampionX Corp. shows a P/E of 15.52, both indicating higher valuations than Avantor. Despite its attractive valuation, Avantor's stock performance has lagged behind broader market indices, with a year-to-date return of -29.85% compared to the S&P 500's 13.30%. This performance underscores the potential for upside as the market reassesses Avantor's valuation in light of its attractive ratios.