Is CareDx, Inc. overvalued or undervalued?

As of 26 February 2025, the valuation grade for CareDx, Inc. has moved from risky to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, especially given its current price of $18.95 compared to its 52-week high of $34.84. Key ratios include a Price to Book Value of 2.87, an EV to Sales ratio of 2.49, and a troubling ROCE of -19.95%, reflecting ongoing challenges in profitability.
In comparison to its peers, CareDx stands out with a valuation of very attractive despite its negative P/E ratio of -58.59, while Castle Biosciences, Inc. is rated risky with a P/E of -127.48. Additionally, Mesa Laboratories, Inc. also has a risky valuation with a P/E of -106.55. Notably, CareDx's stock has outperformed the S&P 500 over the past year, returning 34.78% compared to the index's 10.26%, further supporting the notion that it may be undervalued in the current market context.