Is The Cooper Cos., Inc. overvalued or undervalued?

As of 30 May 2025, The Cooper Cos., Inc. has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued based on its financial metrics. The P/E ratio stands at 36, significantly higher than the peer Hologic, Inc., which has a P/E of 21.1. Additionally, the EV to EBITDA ratio is 15.35, compared to Hologic's 14.37, indicating a premium valuation relative to its peers.
The company's ROE is at 5.00% and ROCE at 7.04%, which are relatively low, suggesting that the returns generated are not commensurate with the high valuation. The PEG ratio of 1.69 further supports the notion of overvaluation, especially when compared to the industry average. Recent stock performance has also been underwhelming, with a year-to-date decline of 24.38%, contrasting sharply with the S&P 500's gain of 2.44% during the same period.