Is InMode Ltd. overvalued or undervalued?

As of 30 July 2025, the valuation grade for InMode Ltd. has moved from attractive to very attractive, indicating a strong improvement in its valuation outlook. The company appears undervalued, supported by a P/E ratio of 7, a PEG ratio of 0.40, and an impressive ROCE of 103.34%. In comparison, its peer Sanmina Corp. has a significantly higher P/E ratio of 39.80, highlighting the relative attractiveness of InMode's valuation.
Despite its favorable valuation metrics, InMode has underperformed against the S&P 500 across multiple time frames, with a year-to-date return of -9.16% compared to the S&P 500's 12.22%. This performance, alongside a 3-year return of -51.36% versus the S&P 500's 70.41%, suggests that while the stock may be undervalued, market sentiment has not yet reflected this potential.