Is Azenta, Inc. overvalued or undervalued?

As of 21 November 2025, the valuation grade for Azenta, Inc. has moved from risky to attractive, indicating a significant improvement in its perceived value. Despite this positive shift, the company appears to be overvalued based on its current financial metrics. The Price to Book Value stands at 1.00, while the EV to EBITDA is notably high at 38.38, suggesting that investors are paying a premium relative to earnings before interest, taxes, depreciation, and amortization. Additionally, the ROCE is negative at -2.84%, reflecting inefficiencies in generating returns from capital employed.
In comparison to its peers, Azenta's valuation metrics are concerning; for instance, Encompass Health Corp. has a more favorable EV to EBITDA of 12.89, while The Ensign Group, Inc. shows a P/E ratio of 32.46, indicating better market positioning. Furthermore, Azenta's stock has underperformed relative to the S&P 500 over multiple periods, with a year-to-date return of -26.60% compared to the S&P 500's 12.26%. This underperformance reinforces the notion that Azenta may be overvalued in the current market context.