Is Neogen Corp. overvalued or undervalued?

As of 30 July 2024, Neogen Corp. has moved from a valuation grade of very expensive to risky. The company is currently assessed as overvalued. Key ratios include a P/E ratio of 281, an EV to EBITDA of 10.94, and a Price to Book Value of 0.42. In comparison, peers such as Merit Medical Systems, Inc. have a P/E of 41.42, while Lantheus Holdings, Inc. boasts a more attractive P/E of 14.54.
Neogen's financial performance shows concerning metrics, with a ROCE of only 1.61% and a ROE of 0.15%, indicating inefficiency in generating returns. Additionally, the company's stock has significantly underperformed relative to the S&P 500, with a year-to-date decline of 60.71% compared to a modest gain of 2.44% for the index. This stark contrast reinforces the notion that Neogen Corp. is currently overvalued in the market.