Is Sensata Technologies Holding Plc overvalued or undervalued?

As of 29 July 2025, the valuation grade for Sensata Technologies Holding Plc moved from expensive to fair. The company is currently fairly valued based on its metrics. Key ratios include a P/E ratio of 10, a Price to Book Value of 1.54, and an EV to EBITDA of 9.56, which suggest a reasonable valuation compared to its peers. For instance, Cognex Corp. has a significantly higher P/E of 61.49, indicating it is expensive, while Onto Innovation, Inc. shows a fair valuation with a P/E of 20.49.
Despite the fair valuation, Sensata has underperformed relative to the S&P 500, with a 1-year return of -10.16% compared to the index's 17.14%, and a 5-year return of -26.65% versus 96.61% for the S&P 500. This underperformance may indicate potential concerns despite the fair valuation.