Is Helios Technologies, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Helios Technologies, Inc. has moved from very attractive to very expensive, indicating a significant shift in its perceived value. The company appears to be overvalued based on its current metrics, with a P/E ratio of 29, an EV to EBITDA of 10.38, and a PEG ratio of 2.34, all suggesting that the stock is trading at a premium compared to its earnings and growth potential.
In comparison to peers, Helios Technologies has a notably higher P/E ratio than Modine Manufacturing Co. at 36.40 and Gates Industrial Corp. at 27.60, both of which are in the same industry. The company's return performance shows a mixed picture; while it outperformed the S&P 500 with a 1-week return of 12.46% compared to 1.70%, it lagged behind over longer periods, such as the 3-year and 5-year returns. This reinforces the notion that while short-term performance may seem strong, the overall valuation may not be justified in the long run.