Is CareDx, Inc. overvalued or undervalued?

As of 17 October 2025, CareDx, Inc. moved from fair to very attractive in valuation grade. The company appears undervalued given its current Price to Book Value of 2.87 and an EV to Capital Employed ratio of 5.58, despite being loss-making and having negative returns on capital and equity. In comparison to peers, CareDx's EV to EBITDA stands at -27.94, while Organogenesis Holdings, Inc. has a significantly higher P/E ratio of 608.59, indicating a stark contrast in valuation.
Notably, CareDx's stock has underperformed against the S&P 500, with a year-to-date return of -32.70% compared to the index's 13.30%. This trend continues over longer periods, with a 5-year return of -72.05% versus the S&P 500's 91.29%, reinforcing the notion that the stock may be undervalued relative to its potential.