Is GeneDx Holdings Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for GeneDx Holdings Corp. has moved from very expensive to attractive, indicating a shift towards a more favorable assessment. The company appears to be undervalued, especially considering its current Price to Book Value of 7.99 and an EV to Sales ratio of 5.92, which suggest potential for growth despite its current losses. Additionally, the EV to EBITDA ratio stands at a high 188.80, reflecting significant operational challenges compared to its peers.
In comparison to its industry, GeneDx's valuation metrics are notably higher than those of Aveanna Healthcare Holdings, which has a P/E of 31.16 and an EV to EBITDA of 12.45, suggesting that GeneDx may have room for improvement in operational efficiency. The company has outperformed the S&P 500 with a year-to-date return of 57.35% compared to the index's 13.30%, reinforcing the notion that despite its current challenges, there is potential for significant upside.