Is InMode Ltd. overvalued or undervalued?

As of 2 May 2024, InMode Ltd. has moved from a very attractive to an attractive valuation grade. The company is currently considered undervalued based on its strong financial metrics, including a P/E ratio of 7, an EV to EBITDA ratio of 6.56, and a PEG ratio of 0.40. These figures suggest that InMode is trading at a discount compared to its earnings growth potential.
In comparison to its peers, InMode's P/E ratio is significantly lower than that of Integer Holdings Corp., which has a P/E of 44.32 and is categorized as very expensive. Additionally, while Glaukos Corp. and Inari Medical, Inc. are both classified as risky with negative P/E ratios, InMode's financial performance, highlighted by a remarkable ROCE of 103.34% and an ROE of 28.38%, reinforces its undervalued status. Despite recent stock performance lagging behind the S&P 500, with a year-to-date decline of 19.22%, the underlying fundamentals suggest that InMode presents a compelling investment opportunity at its current price of 13.49.