Is Bio-Rad Laboratories, Inc. overvalued or undervalued?

As of 28 April 2022, the valuation grade for Bio-Rad Laboratories, Inc. has moved from attractive to risky, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios reveal a P/E ratio of 5, an EV to EBITDA of 10.62, and a PEG ratio of 0.07, which suggest that despite low earnings multiples, the overall valuation remains concerning compared to its peers.
In comparison to its industry, Bio-Rad's P/E ratio is significantly lower than that of Hologic, Inc., which stands at 21.10, and Insulet Corp., at 49.67, both of which are classified as expensive. The company's return on equity (ROE) is 17.30%, but this is overshadowed by its poor stock performance, with a year-to-date decline of 28.30% compared to a modest gain of 2.44% for the S&P 500. This combination of low valuation ratios and poor relative performance reinforces the conclusion that Bio-Rad Laboratories, Inc. is currently overvalued.