Is Balchem Corp. overvalued or undervalued?

As of 17 October 2025, Balchem Corp. has moved from expensive to fair in its valuation grade. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 40, an EV to EBITDA of 23.46, and a Price to Book Value of 4.50. In comparison, The J. M. Smucker Co. has a P/E of 23.79 and a risky valuation, while Conagra Brands, Inc. is very attractive with a P/E of 8.91.
Despite Balchem's fair valuation, its stock has underperformed relative to the S&P 500 over the last year, with a return of -14.21% compared to the index's 14.08%. However, over a three-year period, the company has managed a return of 14.22%, which is significantly lower than the S&P 500's 81.19% return, indicating potential challenges ahead.