Is DocGo, Inc. overvalued or undervalued?

As of 8 May 2025, the valuation grade for DocGo, Inc. has moved from fair to risky, indicating a significant deterioration in its financial outlook. The company is currently considered overvalued, particularly given its negative P/E ratio and troubling returns on capital. Key ratios include a Price to Book Value of 0.49, an EV to EBITDA of 7.86, and an EV to Sales of 0.22, which suggest that while the company may have low asset values relative to its price, its operational metrics are concerning.
In comparison to its peers, DocGo, Inc. has a P/E ratio of -16.70, while Addus HomeCare Corp. stands at 22.93, illustrating a stark contrast in valuation. Other risky peers like Pediatrix Medical Group, Inc. have a more favorable EV to EBITDA of 6.91 compared to DocGo's 7.86. Additionally, DocGo's recent stock performance has been poor, with a year-to-date return of -60.14%, significantly underperforming the S&P 500's 2.44% return, reinforcing the notion that the company is currently overvalued in the market.