Is DexCom, Inc. overvalued or undervalued?

As of 1 May 2025, the valuation grade for DexCom, Inc. has moved from fair to expensive, indicating that the company is overvalued. Key valuation ratios include a P/E ratio of 64, an EV to EBITDA of 39.43, and a Price to Book Value of 15.03, all of which suggest that the stock is trading at a premium compared to its peers. In comparison, Edwards Lifesciences Corp. has a P/E of 31.17 and an EV to EBITDA of 26.51, while Agilent Technologies, Inc. is valued more reasonably with a P/E of 27.42.
Recent performance shows that DexCom has underperformed against the S&P 500 across multiple time frames, with a 1-year return of 9.10% compared to the S&P 500's 17.14%, and a significant 5-year decline of 22.14% versus the S&P 500's 96.61%. This further reinforces the view that DexCom is overvalued in the current market environment.