Is Castle Biosciences, Inc. overvalued or undervalued?
As of May 5, 2025, Castle Biosciences, Inc. is considered a risky investment due to its overvaluation, reflected in a Price to Book Value of 1.15, an unfavorable EV to EBITDA ratio of 8.54, a negative ROCE of -7.81%, and significant underperformance compared to the S&P 500.
As of 5 May 2025, the valuation grade for Castle Biosciences, Inc. has moved from attractive to risky, indicating a shift in perception regarding its investment potential. The company appears to be overvalued, given its current Price to Book Value of 1.15, an EV to EBITDA ratio of 8.54, and a negative ROCE of -7.81%. In comparison to peers, Castle's EV to EBITDA ratio is significantly less favorable than that of Atrion Corp., which has a ratio of 26.2211, and Silk Road Medical, Inc., with a ratio of -18.1243.The stock has underperformed relative to the S&P 500, with a year-to-date return of -11.97% compared to the index's 12.22%, and a 1-year return of -22.73% versus 17.14% for the S&P 500. This trend reinforces the notion that Castle Biosciences, Inc. is overvalued in the current market context.
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