Is Sensient Technologies Corp. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Sensient Technologies Corp. has moved from attractive to fair. The company appears to be overvalued based on its current valuation metrics. The P/E ratio stands at 41, which is significantly higher than the industry average, while the EV to EBITDA ratio is 30.13, indicating a premium valuation compared to peers like Post Holdings, Inc. with a P/E of 20.40 and Balchem Corp. at 36.79.
In addition, the PEG ratio of 0.99 suggests that the stock may not be as undervalued as it appears, especially when compared to Freshpet, Inc. with a PEG of 0.53. Recent stock performance shows that while Sensient has outperformed the S&P 500 year-to-date with a return of 32.32% compared to 16.30%, it has lagged behind in the longer term, with a 5-year return of 44.11% versus the S&P 500's 109.18%. This divergence reinforces the notion that Sensient Technologies Corp. is currently overvalued.