Is Globus Medical, Inc. overvalued or undervalued?

As of 17 October 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 given its current metrics, particularly with a P/E ratio of 36, which is significantly higher than the peer average of 18.37 for companies like Masimo Corp. and Lantheus Holdings, Inc. Additionally, the EV to EBITDA ratio stands at 13.54, while the peer average is lower, suggesting that Globus Medical is trading at a premium compared to its peers.
In terms of return performance, Globus Medical has underperformed against the S&P 500 over various periods, including a year-to-date return of -27.97% compared to the S&P 500's 13.30%. This trend reinforces the notion that the stock may be overvalued, especially when considering its PEG ratio of 0.54, which indicates that growth expectations may not justify its current price. Overall, the combination of high valuation ratios and poor relative performance suggests that investors should approach Globus Medical with caution.