Is Inogen, Inc. overvalued or undervalued?

As of 24 February 2022, Inogen, Inc. has moved from an attractive to a risky valuation grade, indicating a significant deterioration in its financial outlook. The company is currently considered overvalued, as evidenced by its negative P/E ratio and poor return metrics. Key valuation ratios include a Price to Book Value of 0.90, an EV to EBITDA of -5.76, and an EV to Sales of 0.17, all of which suggest that the company is struggling to generate positive returns.
Inogen's peers, such as Bioventus, Inc. with a P/E of 72.81 and Semler Scientific, Inc. with a P/E of 32.26, highlight the disparity in valuation within the industry, as both are significantly outperforming Inogen. The company's recent stock performance has been disappointing, with a year-to-date return of -4.14% compared to the S&P 500's 12.22%, and a staggering 5-year return of -69.45% against the S&P 500's 96.61%, reinforcing the notion that Inogen is currently overvalued.