Is DexCom, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for DexCom, Inc. has moved from very expensive to expensive, indicating a slight improvement in perceived value but still reflecting a high valuation. The company is considered overvalued based on its current metrics. The P/E ratio stands at 64, significantly higher than its peer Edwards Lifesciences Corp. at 31.17, while the EV to EBITDA ratio of 39.43 also exceeds that of Agilent Technologies, Inc. at 20.75.
In comparison to its peers, DexCom, Inc. shows a higher valuation across key ratios, with an EV to Sales ratio of 8.15 and a Price to Book Value of 15.03, further supporting the overvaluation assessment. Notably, the company's stock has underperformed relative to the S&P 500 over multiple periods, with a year-to-date return of -14.36% compared to the S&P 500's 13.30%, indicating a significant lag in performance.