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 when considering its Price to Book Value of 7.99 and an EV to Sales ratio of 5.92, which suggest a potential for growth relative to its current market price. Additionally, the EV to Capital Employed ratio stands at 12.65, highlighting the company's operational efficiency despite its losses.
In comparison to peers, GeneDx's valuation metrics are strikingly high; for instance, its EV to EBITDA ratio is significantly elevated at 188.80, while Aveanna Healthcare Holdings, Inc. shows a much lower EV to EBITDA of 12.4508. This indicates that GeneDx may be priced for future growth that is not yet realized. Notably, GeneDx has outperformed the S&P 500 with a year-to-date return of 57.35% compared to the index's 13.30%, reinforcing the narrative of its potential undervaluation.