Is Novanta, Inc. overvalued or undervalued?

As of 2 November 2023, Novanta, Inc. has moved from an expensive to a very expensive valuation grade. The company is currently considered overvalued. Key ratios include a P/E ratio of 61, an EV to EBITDA of 26.72, and a Price to Book Value of 5.95, all of which significantly exceed industry averages.
In comparison to peers, Coherent Corp. shows a P/E of 61.58 and an EV to EBITDA of 14.69, while Cognex Corp. has a P/E of 43.12 and an EV to EBITDA of 30.28, indicating that Novanta is trading at a premium relative to its competitors. Additionally, Novanta's recent stock performance has underperformed the S&P 500, with a year-to-date return of -19.66% compared to the index's gain of 2.44%.