Is Henry Schein, Inc. overvalued or undervalued?

As of 25 February 2025, the valuation grade for Henry Schein, Inc. has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a P/E ratio of 17, which is slightly above the industry average of approximately 16.5, and an EV to EBITDA ratio of 10.66, also in line with its peers. The PEG ratio stands at 0.88, suggesting that the stock may be undervalued relative to its growth prospects.
In comparison to peers, Henry Schein, Inc. is on par with companies like Patterson Companies, which has a P/E ratio of 16.2, and Dentsply Sirona, with an EV to EBITDA of 11.5. Notably, the company's ROCE is 12.57% and ROE is 15.64%, indicating strong profitability metrics. While the stock has underperformed against the S&P 500 over the long term, it has shown resilience in the short term, with a 1-week return of 1.60% compared to a slight decline in the index.