Is Globus Medical, Inc. overvalued or undervalued?

As of 22 August 2025, the valuation grade for Globus Medical, Inc. has moved from very attractive to attractive, indicating a shift in perception regarding its investment potential. The company appears to be overvalued based on its current metrics, particularly given its P/E ratio of 36, which is significantly higher than the industry average of 18.37. Additionally, the EV to EBITDA ratio stands at 13.54, and the PEG ratio is notably low at 0.54, suggesting that while growth expectations may be high, the current price does not reflect a compelling value proposition.
In comparison to its peers, Globus Medical's valuation ratios are less favorable; for instance, Masimo Corp. has a P/E ratio of 179.74 and an EV to EBITDA of 57.21, while Lantheus Holdings, Inc. presents a more attractive P/E of 10.13 and an EV to EBITDA of 7.12. This suggests that Globus Medical is priced higher relative to its growth potential compared to some peers. Furthermore, the company's stock has underperformed against the S&P 500 across multiple periods, with a year-to-date return of -31.39% compared to the S&P 500's 12.22%, reinforcing the view that it may be overvalued at present.