Is Inspire Medical Systems, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Inspire Medical Systems, Inc. has moved from attractive to fair. The company appears to be overvalued, particularly when considering its high P/E ratio of 60, which significantly exceeds the peer average P/E of 43.22 for similar companies like Penumbra, Inc. and QIAGEN NV, which have P/E ratios of 75.41 and 24.20, respectively. Additionally, the EV to EBITDA ratio stands at 62.23, further indicating a premium valuation compared to its peers.
Inspire Medical's PEG ratio of 0.12 suggests potential growth relative to its price, but this is overshadowed by its steep valuation metrics. The company has underperformed against the S&P 500, with a year-to-date return of -57.92% compared to the S&P 500's 13.30%, reinforcing the notion that the stock may be overvalued in its current state.