Is Inspire Medical Systems, Inc. overvalued or undervalued?

As of 3 September 2025, the valuation grade for Inspire Medical Systems, Inc. has moved from expensive to fair. The company appears to be fairly valued based on its current metrics, despite a high P/E ratio of 60, which is significantly above the peer average of 43.22, and an EV to EBITDA ratio of 62.23, compared to peers like QIAGEN NV at 15.05. Additionally, the PEG ratio stands at a notably low 0.12, indicating potential growth relative to its price.
Inspire Medical Systems is positioned against peers such as Penumbra, Inc., which is classified as very expensive with a P/E of 75.41, and Bio-Rad Laboratories, Inc., which has a fair valuation with a P/E of 16.20. The company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -55.01% compared to the index's 12.22%, suggesting that the stock may be undervalued relative to its growth prospects despite its current fair valuation status.