Is STERIS Plc (Ireland) overvalued or undervalued?

As of 7 August 2025, the valuation grade for STERIS Plc (Ireland) has moved from fair to expensive, indicating that the stock is overvalued. The company exhibits a P/E ratio of 34, which is significantly higher than the industry average, and an EV to EBITDA ratio of 17.51, further supporting the notion of overvaluation. Additionally, the PEG ratio stands at 1.28, suggesting that the stock price may not be justified by its growth prospects.
In comparison to its peers, STERIS Plc's P/E ratio is higher than Edwards Lifesciences Corp. at 31.17 and lower than ResMed, Inc. at 37.73, while its EV to EBITDA ratio is lower than that of Edwards Lifesciences Corp. at 26.51. The company's recent stock performance shows a year-to-date return of 21.86%, which outpaces the S&P 500's 12.22%, but over the longer term, its 3-year and 5-year returns of 29.31% and 42.40% respectively lag behind the S&P 500's 70.41% and 96.61%. This suggests that while STERIS has performed well recently, its valuation may not be sustainable in the long run.