Is Sensata Technologies Holding Plc overvalued or undervalued?

As of 20 June 2025, the valuation grade for Sensata Technologies Holding Plc has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios include a P/E ratio of 10, an EV to EBITDA of 9.56, and a PEG ratio of 0.43, which suggests that while the company may have growth potential, its current pricing does not reflect that potential favorably compared to its earnings.
In comparison to its peers, Sensata's P/E ratio of 10 is notably lower than Coherent Corp.'s P/E of 61.58, which is classified as very attractive, and higher than Onto Innovation, Inc.'s P/E of 19.10, which is considered attractive. This disparity highlights Sensata's overvaluation in the current market context. Additionally, the company's recent stock performance has lagged behind the S&P 500, with a 1-year return of -24.70% compared to the index's 10.26%, further reinforcing the notion that the stock is overvalued.