Is DexCom, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for DexCom, Inc. has moved from expensive to fair. The company appears to be fairly valued at this time. 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. 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 P/E of 27.42 and an EV to EBITDA of 20.75, indicating that DexCom is priced higher than its peers.
Despite the recent adjustment in valuation, DexCom's stock has underperformed significantly against the S&P 500, with a year-to-date return of -25.14% compared to the S&P 500's 16.30%. This stark contrast in returns reinforces the notion that while the company's valuation has improved, it still faces challenges in the market.