Is Dentsply Sirona, Inc. overvalued or undervalued?

As of 14 November 2022, Dentsply Sirona, Inc. has moved from a fair to a risky valuation grade. The company appears to be overvalued based on its current financial metrics. The P/E ratio stands at 22, while the industry average is significantly lower, indicating a premium valuation. Additionally, the EV to EBITDA ratio is 9.86, which is relatively high compared to peers like Insulet Corp. with an EV to EBITDA of 50.28 and The Cooper Cos., Inc. at 14.70.
In terms of profitability, Dentsply Sirona's ROCE is 6.36% and ROE is 8.84%, which are not particularly strong compared to the industry standards. The company has underperformed the S&P 500 significantly over various time frames, with a year-to-date return of -18.44% compared to the S&P 500's 2.44%. Overall, Dentsply Sirona, Inc. is considered overvalued in the current market environment.