Is Azenta, Inc. overvalued or undervalued?

As of 9 August 2022, the valuation grade for Azenta, Inc. moved from expensive to risky, indicating a deterioration in its valuation outlook. The company is currently considered overvalued, particularly given its negative P/E ratio and poor return metrics. Key ratios include a Price to Book Value of 1.00, an EV to EBITDA of 38.38, and an EV to Sales of 2.17, which suggest that the company is trading at a premium compared to its financial performance.
In comparison to peers, Azenta, Inc. has a significantly lower EV to EBITDA ratio than Encompass Health Corp. at 12.8894 and The Ensign Group, Inc. at 21.1011, both of which are rated attractive. Furthermore, the company's recent stock performance has been disappointing, with a year-to-date return of -37.88%, compared to a positive return of 12.22% for the S&P 500, reinforcing the notion that Azenta is overvalued relative to broader market performance.