Is Bio-Techne Corp. overvalued or undervalued?

As of 1 November 2023, Bio-Techne Corp. has moved from an expensive to a very expensive valuation grade, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued, with a P/E ratio of 37, which is substantially higher than its peers such as BioMarin Pharmaceutical, Inc. at 19.19 and Elanco Animal Health, Inc. at 13.22. Additionally, Bio-Techne's EV to EBITDA stands at 20.54, compared to BioMarin's 13.77, further highlighting the disparity in valuation.
The PEG ratio for Bio-Techne is notably high at 12.84, suggesting that the stock price is not justified by its earnings growth potential. With a ROCE of 12.19% and ROE of 10.25%, the returns on capital and equity are relatively modest, especially when juxtaposed against the high valuation metrics. The company's stock has underperformed significantly compared to the S&P 500, with a year-to-date return of -31.56% versus the index's 2.44%, reinforcing the notion that Bio-Techne is currently overvalued.