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 is currently fairly valued based on its valuation metrics. Key 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, Agilent Technologies, Inc. is fairly valued with a P/E of 27.42, while Edwards Lifesciences Corp. is considered expensive with a P/E of 31.17.
Despite the fair valuation, DexCom has underperformed significantly compared to the S&P 500, with a year-to-date return of -22.30% versus the index's 16.30%. This trend is further reflected in the three-year return of -46.33% compared to the S&P 500's 76.66%, indicating that while the stock may be fairly valued, its recent performance has been disappointing.