Is Azenta, Inc. overvalued or undervalued?

As of 21 November 2025, the valuation grade for Azenta, Inc. has moved from risky to attractive. The company appears to be undervalued, particularly given its current Price to Book Value of 1.00 and an EV to Sales ratio of 2.17, which suggests potential for growth relative to its market price. In comparison to its peers, Azenta's EV to EBITDA ratio stands at 38.38, which is significantly higher than Encompass Health Corp.'s 12.89 and The Ensign Group, Inc.'s 21.10, indicating that while it may be undervalued, it is still facing challenges in profitability.
Despite the attractive valuation grade, Azenta has underperformed against the S&P 500 over multiple periods, with a year-to-date return of -30.22% compared to the S&P 500's 12.26%. This trend continues over longer time frames, with a 5-year return of -48.06% against the S&P 500's 85.61%, highlighting the need for caution despite the improved valuation outlook.