Is Waters Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Waters Corp. has moved from expensive to attractive, indicating a shift in perception regarding its value. The company appears to be undervalued, particularly in comparison to its peers. Key valuation ratios include a P/E ratio of 85, an EV to EBITDA of 54.96, and a PEG ratio of 11.06, which suggest that despite its high valuations, there may be growth potential that is not fully reflected in the current price.
In the peer comparison, Waters Corp. has a P/E ratio significantly higher than ResMed, Inc. at 37.73 and Agilent Technologies, Inc. at 27.42, which are both in the same industry. Additionally, the EV to EBITDA ratio of 54.96 is higher than that of ResMed, which stands at 27.08, further emphasizing the relative valuation landscape. Over the past three years, Waters Corp. has returned 19.67%, while the S&P 500 has significantly outperformed with a return of 81.19%, highlighting a potential opportunity for investors as the stock may be undervalued relative to its growth prospects.