Is Kadant Inc. overvalued or undervalued?

As of 17 October 2025, Kadant Inc. has moved from a fair to an expensive valuation grade. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 44, a Price to Book Value of 5.57, and an EV to EBITDA of 23.20. In comparison, peers such as ESAB Corp. have a P/E of 24.12 and an 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, indicating that Kadant Inc. is trading at a premium relative to some of its peers.
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 500's 13.30% suggests that the stock may be struggling to justify its high valuation. Overall, Kadant Inc. is considered overvalued in the current market environment.