Is DexCom, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for DexCom, Inc. moved from expensive to fair. The company is currently fairly valued based on its financial 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. has a more attractive P/E ratio of 27.42 and an EV to EBITDA of 20.749, indicating that DexCom may be relatively overvalued against its peer.
Despite the fair valuation, DexCom has underperformed significantly compared to the S&P 500, with a year-to-date return of -21.33% versus the S&P 500's 16.30%. This underperformance over multiple periods suggests that investors may need to reassess their expectations regarding the company's growth prospects.