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 significant shift in its perceived value. The company appears undervalued, particularly when considering its Price to Book Value of 7.99 and an EV to Sales ratio of 5.92. Despite its negative P/E ratio due to losses, the EV to EBITDA ratio stands at a high 188.80, suggesting that the market may be pricing in future growth potential that has yet to materialize.
In comparison to its peers, GeneDx's valuation metrics are strikingly different; for instance, Aveanna Healthcare Holdings, Inc. has a P/E ratio of 31.16 and an EV to EBITDA of 12.45, reflecting a more traditional valuation approach. The substantial difference in these ratios highlights GeneDx's current market position. Over the past year, GeneDx has outperformed the S&P 500 with a return of 115.96% compared to the index's 14.08%, reinforcing the notion that the stock may be undervalued relative to its growth trajectory.