Is Helios Technologies, Inc. overvalued or undervalued?

As of 6 May 2025, Helios Technologies, Inc. has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued. Key ratios include a P/E ratio of 29, an EV to EBITDA of 10.38, and a PEG ratio of 2.34, all indicating a premium valuation relative to its earnings growth potential.
In comparison to peers, Helios Technologies has a P/E ratio of 29.32 and an EV to EBITDA of 10.45, which are slightly higher than the industry averages. Notably, the company's return on equity (ROE) stands at 4.21%, which is relatively low, suggesting inefficiencies in generating profit from equity. Additionally, Helios has underperformed against the S&P 500 over various time frames, with a year-to-date return of -29.95% compared to the S&P 500's 2.44%, reinforcing the notion of overvaluation.