Is Sotera Health Co. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Sotera Health Co. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company appears overvalued based on its current metrics, with a P/E ratio of 36, a Price to Book Value of 8.52, and an EV to EBITDA of 10.60. In comparison, peers such as Lantheus Holdings, Inc. have a much lower P/E ratio of 10.13, and Haemonetics Corp. shows a more attractive EV to EBITDA of 10.38, highlighting the disparity in valuation.
Recent stock performance shows that Sotera Health Co. has underperformed against the S&P 500 over the past year, with a return of -4.6% compared to the index's 17.14%. This underperformance, coupled with the elevated valuation ratios, reinforces the conclusion that Sotera Health Co. is overvalued in the current market environment.