Is Sensient Technologies Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Sensient Technologies Corp. moved from expensive to fair. The company appears fairly valued based on its current metrics. Key ratios include a P/E ratio of 41, a Price to Book Value of 4.77, and an EV to EBITDA of 23.00. When compared to peers, Sensient's P/E ratio is higher than Balchem Corp.'s 36.79 and significantly above Post Holdings, Inc.'s 20.40, indicating a premium valuation relative to some competitors.
In terms of recent performance, Sensient Technologies has outperformed the S&P 500 over the year with a return of 21.73% compared to the index's 14.08%. However, over longer periods, such as the 3-year and 5-year returns, Sensient has lagged behind the S&P 500, with returns of 34.67% and 39.91% respectively, versus 81.19% and 91.29% for the index. This mixed performance suggests that while the company is currently fairly valued, its long-term growth prospects may warrant closer scrutiny.