Is ICU Medical, Inc. overvalued or undervalued?

As of 7 November 2022, the valuation grade for ICU Medical, Inc. has moved from expensive to risky, indicating a shift in perception regarding its valuation. Based on the analysis, the company appears to be overvalued given its current financial metrics and peer comparisons. The price-to-book value stands at 1.65, while the EV to EBITDA ratio is 13.71, and the ROCE is a mere 3.62%. These ratios suggest that the company is not generating adequate returns relative to its valuation.
In comparison to its peers, ICU Medical, Inc. shows a significantly negative P/E ratio of -82.12, while companies like CONMED Corp. have a fair valuation with a P/E of 19.36 and an EV to EBITDA of 13.04. Other peers, such as Merit Medical Systems, Inc., are classified as expensive with a P/E of 41.42. Additionally, ICU Medical's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -17.46% compared to the index's 2.44%. This further reinforces the conclusion that ICU Medical, Inc. is overvalued in the current market context.