Is CareDx, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for CareDx, Inc. has moved from fair to very attractive, indicating a significant improvement in its perceived value. Based on the available metrics, CareDx appears to be undervalued, especially considering its Price to Book Value of 2.87 and an EV to Capital Employed ratio of 5.58, despite its negative earnings metrics. The company’s EV to Sales ratio stands at 2.49, which suggests a reasonable valuation relative to its sales, particularly when compared to peers like Organogenesis Holdings, Inc. with a P/E of 608.59 and Castle Biosciences, Inc. with an EV to EBITDA of -71.36.
In terms of stock performance, CareDx has faced substantial declines, with a year-to-date return of -32.70% compared to the S&P 500's 13.30%, and a five-year return of -72.05% against the S&P 500's 91.29%. This stark contrast reinforces the notion that CareDx may be undervalued, as its current price does not reflect its potential relative to its industry peers.