Is Inspire Medical Systems, Inc. overvalued or undervalued?

As of 29 May 2025, Inspire Medical Systems, Inc. has moved from a fair to an attractive valuation grade. The company is currently considered undervalued, particularly when compared to its peers. Key ratios include a P/E ratio of 60, an EV to EBITDA of 62.23, and a PEG ratio of 0.12, which indicates strong growth potential relative to its price.
Inspire Medical Systems' P/E ratio of 60 is higher than Insulet Corp.'s 49.67, which is categorized as expensive, while Shockwave Medical, Inc. is deemed very expensive with a P/E of 75.84. The company's ROCE stands at 18.55%, showcasing effective capital utilization. Despite recent stock performance lagging behind the S&P 500, with a year-to-date return of -29.88% compared to the index's 2.44%, the attractive valuation suggests potential for recovery and growth in the future.