Is Bioventus, Inc. overvalued or undervalued?

As of 10 May 2022, Bioventus, Inc. has moved from an attractive to a risky valuation grade, indicating a significant shift in its perceived financial health. The company appears to be overvalued, given its high P/E ratio of 345, a PEG ratio of 3.00, and a price-to-book value of 3.71. In comparison, peers such as Butterfly Network, Inc. and Axogen, Inc. are also classified as risky but have much lower P/E ratios of -8.9980 and -57.6637, respectively, highlighting Bioventus's inflated valuation relative to its industry.
The company's return metrics further reinforce this assessment, with a year-to-date decline of 37.9%, contrasting sharply with the S&P 500's modest gain of 2.44% over the same period. Additionally, Bioventus's ROCE stands at 6.72% and ROE at a mere 1.08%, suggesting inefficiencies in generating returns for shareholders. Overall, the combination of high valuation ratios and poor performance metrics leads to the conclusion that Bioventus, Inc. is overvalued in the current market environment.