Is Sensient Technologies Corp. overvalued or undervalued?

As of 6 May 2025, the valuation grade for Sensient Technologies Corp. has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 41, an EV to EBITDA of 23.00, and a PEG ratio of 0.99, indicating a reasonable growth expectation relative to its price.
In comparison to peers, Sensient Technologies Corp. has a P/E ratio slightly above the industry average of 40.18, while Balchem Corp. is considered expensive with a P/E of 37.98, and Lancaster Colony Corp. stands out as attractive with a P/E of 25.39. Notably, Sensient's ROCE is 11.09% and ROE is 11.71%, suggesting solid returns on capital and equity. The company's stock has outperformed the S&P 500 year-to-date, returning 37.83% compared to the index's 2.44%, reinforcing its fair valuation status.