Is Kadant Inc. overvalued or undervalued?

As of 30 June 2025, Kadant Inc. has moved from expensive to very expensive, indicating a significant increase in its valuation grade. The company is currently overvalued, with a P/E ratio of 44, a Price to Book Value of 5.57, and an EV to EBITDA ratio of 30.08. In comparison, peers such as AAON, Inc. and ESAB Corp. have P/E ratios of 54.01 and 24.12, respectively, highlighting that Kadant's valuation is not only high but also exceeds that of some of its more expensive peers.
Despite a strong historical performance over the long term, with a 5-year return of 168.83%, Kadant's recent returns have lagged behind the S&P 500, with a year-to-date decline of 10.49% compared to the index's gain of 12.22%. This divergence further reinforces the view that Kadant Inc. is overvalued in the current market context.