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 its valuation outlook. The company appears to be overvalued based on its current metrics, with a P/E ratio of 64, a Price to Book Value of 15.03, and an EV to EBITDA ratio of 39.43. In comparison, peers such as Edwards Lifesciences Corp. have a P/E of 31.17 and an EV to EBITDA of 26.51, while Agilent Technologies, Inc. shows a more favorable P/E of 27.42 and an EV to EBITDA of 20.75.
Despite a recent one-week stock return of 2.27% compared to the S&P 500's 1.70%, DexCom's longer-term performance has been significantly lagging, with a 3-year return of -33.22% versus the S&P 500's 81.19%. This underperformance, combined with its high valuation ratios relative to peers, reinforces the conclusion that DexCom, Inc. is overvalued.