Is Helios Technologies, Inc. overvalued or undervalued?

As of 7 August 2025, the valuation grade for Helios Technologies, Inc. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 29, which is considerably higher than peers like Modine Manufacturing Co. at 36.40 and Mueller Water Products, Inc. at 26.00. Additionally, the EV to EBITDA ratio of 10.38 further supports this conclusion, as it is higher than the industry standard.
In comparison to its peers, Helios Technologies shows a PEG ratio of 2.34, which is also elevated relative to Modine Manufacturing's 2.24. The company's return performance has been mixed; while it has outperformed the S&P 500 year-to-date with a return of 24.57% compared to 12.22%, it has significantly lagged over the longer term, with a 5-year return of 44.29% versus the S&P's 96.61%. This discrepancy suggests that while the company has had some recent success, its high valuation metrics may not be justified by its performance relative to the broader market.