Is CareDx, Inc. overvalued or undervalued?

As of 7 July 2025, CareDx, Inc. has moved from a fair to a very attractive valuation grade. The company appears to be undervalued, particularly given its current price of 14.77, which is significantly lower than its 52-week high of 32.97. Key valuation ratios include a Price to Book Value of 2.87, an EV to Sales ratio of 2.49, and an EV to Capital Employed ratio of 5.58, which suggest potential for growth despite the company's current losses.
In comparison to peers, CareDx's EV to EBITDA ratio stands at -27.94, while Organogenesis Holdings, Inc. has a P/E ratio of 608.59, indicating a stark contrast in valuation metrics. Similarly, Castle Biosciences, Inc. shows an EV to EBITDA of -71.36, further highlighting CareDx's relative positioning in the market. Notably, while CareDx has experienced a 49.52% decline over the past year, the S&P 500 has returned 17.14%, reinforcing the notion that CareDx may be undervalued in light of its potential recovery.