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, indicating a shift in its perceived value. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 41, significantly higher than the peer average of 45.73, while the EV to EBITDA ratio is 23.00, also above the industry average of 22.29. Additionally, the PEG ratio of 0.99 suggests that the stock is not undervalued relative to its growth rate.
In comparison to its peers, Post Holdings, Inc. has a more attractive P/E ratio of 20.40, and Balchem Corp. shows a fair valuation with a P/E of 36.79. This highlights that Sensient Technologies Corp. is trading at a premium compared to some of its competitors. Furthermore, while the company has performed well year-to-date with a return of 32.32% against the S&P 500's 16.30%, its long-term performance has lagged, with a 5-year return of 44.11% compared to the S&P 500's 109.18%.