Is Hologic, Inc. overvalued or undervalued?

As of 5 February 2025, the valuation grade for Hologic, Inc. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 21, an EV to EBITDA of 14.41, and a PEG ratio of 1.65. In comparison, peers such as Align Technology, Inc. have a P/E ratio of 20.46 and an EV to EBITDA of 11.41, while Baxter International, Inc. shows a higher P/E of 28.68, suggesting that Hologic is positioned competitively within its industry.
Despite its fair valuation, Hologic's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -5.30% compared to the S&P 500's 12.22%. Over the last year, Hologic has declined by 16.46%, while the S&P 500 has gained 17.14%, further emphasizing the challenges the company faces in the current market environment.