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 based on its current financial metrics. Key ratios include a P/E ratio of 60, an EV to EBITDA of 62.23, and a PEG ratio of 0.12, which suggests that the stock is priced high relative to its earnings growth potential.
In comparison to its peers, Inspire Medical Systems has a P/E ratio significantly higher than QIAGEN NV at 24.20 and Bio-Rad Laboratories, Inc. at 16.20, both of which are considered fair. Additionally, while Inspire's PEG ratio is low at 0.12, indicating potential undervaluation in terms of growth, the overall high valuation ratios suggest it is not justified at the current price level. Over the past year, Inspire Medical Systems has underperformed significantly, with a return of -60.44% compared to the S&P 500's 14.08%, reinforcing the notion that the stock may be overvalued.