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 company's stock. Based on the current metrics, Avantor appears to be undervalued, with a P/E ratio of 11, significantly lower than the peer average of 11.82 for similar companies. Additionally, the company boasts a PEG ratio of 0.16, suggesting strong growth potential relative to its price, while its EV to EBITDA ratio stands at 11.44, which is competitive within the industry.
In comparison to its peers, NewMarket Corp. has a P/E ratio of 16.30, and ChampionX Corp. shows a P/E of 15.52, both indicating that Avantor is trading at a discount relative to these attractive companies. Despite recent struggles, with a year-to-date return of -29.85% compared to the S&P 500's 13.30%, the stock's recent 1-week return of 10.30% suggests a potential turnaround, reinforcing the attractiveness of its current valuation.