Is CareDx, Inc. overvalued or undervalued?

As of 10 October 2025, the valuation grade for CareDx, Inc. has moved from attractive to very attractive, indicating a positive shift in its valuation outlook. Despite this upgrade, the company appears to be overvalued based on its current financial metrics. The Price to Book Value stands at 2.87, while the EV to Sales ratio is 2.49, both suggesting that the stock may be priced higher than its fundamental value. Additionally, the EV to EBIT ratio is notably negative at -27.94, reflecting ongoing losses.
In comparison to its peers, CareDx, Inc. has a similar EV to EBITDA ratio of -27.82, which highlights the challenges faced by the company relative to its industry. Notably, while CareDx has experienced a 1-month return of 7.95%, it has significantly underperformed against the S&P 500, which returned 0.31% during the same period. Over the past year, CareDx's stock has declined by 52.87%, contrasting sharply with the S&P 500's 13.36% gain, reinforcing the view that CareDx may be overvalued in its current state.