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, indicating a shift in its perceived value. The company appears to be overvalued, particularly when considering its P/E ratio of 60, which is significantly higher than the peer average of 43.22 for similar companies. Additionally, the EV to EBITDA ratio stands at 62.23, again above the peer average, while the PEG ratio is notably low at 0.12, suggesting that growth expectations may not justify the current price.
In comparison to its peers, Penumbra, Inc. is categorized as very expensive with a P/E of 75.41, while QIAGEN NV is considered fair with a P/E of 24.20. This context highlights that Inspire's valuation metrics are relatively high compared to its peers. Furthermore, the stock has underperformed against the S&P 500, with a year-to-date return of -57.92% compared to the index's 13.30%, reinforcing the notion that the stock may be overvalued at its current price.