Is IDEXX Laboratories, Inc. overvalued or undervalued?

As of 1 May 2025, IDEXX Laboratories, Inc. has moved from a fair to an expensive valuation grade. The company is currently considered overvalued based on its elevated financial ratios, including a P/E ratio of 60, an EV to EBITDA of 42.53, and a PEG ratio of 11.32. These metrics significantly exceed those of its peers, such as Abbott Laboratories, which has a P/E of 19.12 and an EV to EBITDA of 25.60, and Thermo Fisher Scientific, with a P/E of 24.86 and an EV to EBITDA of 17.94.
In comparison to the broader market, IDEXX's stock has underperformed relative to the S&P 500 over the past year, with a return of 5.83% compared to the index's 10.26%. This underperformance, along with the high valuation ratios, supports the conclusion that IDEXX Laboratories, Inc. is overvalued in the current market environment.