Is Balchem Corp. overvalued or undervalued?

As of 4 August 2025, Balchem Corp. has moved from fair to expensive in its valuation grade. The company is currently overvalued, as indicated by its P/E ratio of 40, which is significantly higher than the industry average, and an EV to EBITDA ratio of 23.46, also above typical industry levels. Additionally, the Price to Book Value stands at 4.50, further supporting the overvaluation conclusion.
In comparison to its peers, Balchem Corp. has a higher P/E ratio than The J. M. Smucker Co. at 23.79 and Conagra Brands, Inc. at 8.91, both of which are more attractively valued. Furthermore, Balchem's recent stock performance has lagged behind the S&P 500, with a one-year return of -11.13% compared to the index's 17.14%, reinforcing the notion that the stock may be overpriced relative to its growth prospects.