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. 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 30.13, compared to the peer average of 25.86. Additionally, the PEG ratio of 0.99 suggests that the stock may not be priced appropriately relative to its growth.
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. Notably, Sensient's recent stock performance has lagged behind the S&P 500, with a 1-week return of -3.47% compared to the S&P 500's 0.71%, and a 3-year return of 36.73% versus the S&P 500's 76.66%. This underperformance further reinforces the notion that Sensient Technologies Corp. is currently overvalued.