Is Sensient Technologies Corp. overvalued or undervalued?

As of 17 October 2025, Sensient Technologies Corp. moved from expensive to fair valuation. The company appears to be 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. In comparison, Post Holdings, Inc. has a P/E of 20.40 and an EV to EBITDA of 10.71, indicating that Sensient is trading at a premium relative to some peers, while Balchem Corp. has a fair valuation with a P/E of 36.79 and an EV to EBITDA of 22.29.
Despite the fair valuation, Sensient has shown strong recent performance, with a year-to-date return of 34.41% compared to the S&P 500's 13.30%, although its 3-year return of 34.67% significantly lags behind the S&P 500's 81.19%. This suggests that while the stock is fairly valued, its growth potential may not be as robust as some investors might hope.