Is Nordson Corp. overvalued or undervalued?

As of 13 December 2023, the valuation grade for Nordson Corp. has moved from fair to expensive, indicating that the stock is overvalued. The company exhibits a P/E ratio of 46, a Price to Book Value of 6.99, and an EV to EBITDA of 28.50, all of which suggest a premium valuation compared to its peers. For instance, Entegris, Inc. has a P/E of 42.41 and IDEX Corp. stands at 29.59, highlighting that Nordson Corp. is trading at a significantly higher valuation.
In terms of recent performance, Nordson Corp. has underperformed against the S&P 500 over various periods, with a year-to-date return of 8.79% compared to the S&P 500's 12.22%, and a one-year return of -10.95% against the index's 17.14%. This underperformance, coupled with its expensive valuation metrics, reinforces the conclusion that Nordson Corp. is overvalued.