Is Cardinal Health, Inc. overvalued or undervalued?

As of 5 May 2022, Cardinal Health, Inc. has moved from a very attractive to a risky valuation grade. The company is currently assessed as overvalued. Key ratios include a P/E ratio of 27, an EV to EBITDA of 15.20, and a PEG ratio of 0.23, which suggests that despite the low PEG, the overall valuation metrics indicate a premium price relative to its earnings potential.
In comparison to peers, Cardinal Health's P/E ratio of 28.26 is significantly higher than that of McKesson Corp., which stands at 57.12, and Boston Scientific Corp., which is at 85.99, both of which are considered very expensive. The company's recent stock performance has outpaced the S&P 500, with a year-to-date return of 38.66% compared to the S&P's 2.44%, but this strong performance does not negate the current overvaluation based on fundamental metrics.