Is Kadant Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Kadant Inc. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its high P/E ratio of 44, a price-to-book value of 5.57, and an EV to EBITDA ratio of 30.08, which are significantly above industry norms. In comparison, peers such as ESAB Corp. have a more reasonable P/E of 24.12 and EV to EBITDA of 14.88, while Badger Meter, Inc. shows a P/E of 50.53 and an EV to EBITDA of 32.29, highlighting Kadant's relative overvaluation.
Despite a strong recent performance with a 10.81% return over the past week compared to the S&P 500's 1.70%, the year-to-date return of -12.46% versus the S&P's 13.30% suggests that the stock may be struggling to maintain its value in the long term. Overall, Kadant Inc. is currently viewed as overvalued in the market.