Is Bruker Corp. overvalued or undervalued?

As of 13 February 2025, Bruker Corp. has moved from a fair valuation to a very expensive rating. The company is currently overvalued, with a P/E ratio of 49, significantly higher than its peers such as Hologic, Inc. at 21.10 and The Cooper Companies, Inc. at 33.85. Additionally, Bruker Corp. has an EV to EBITDA ratio of 16.45, which also surpasses the industry average, indicating that investors are paying a premium for its earnings.
In terms of financial performance, Bruker Corp. shows a ROCE of 8.66% and a ROE of 7.44%, which are relatively low compared to the elevated valuation metrics. The company's recent stock performance has been poor, with a year-to-date return of -33.93%, contrasting sharply with the S&P 500's gain of 2.44% during the same period. This underperformance reinforces the notion that Bruker Corp. is currently overvalued in the market.