Is Insulet Corp. overvalued or undervalued?

As of 11 March 2025, Insulet Corp. has moved from a fair valuation to an expensive rating. The company is currently overvalued based on its high valuation metrics. The P/E ratio stands at 51, significantly higher than the industry average, while the EV to EBITDA ratio is at 51.48. Additionally, the PEG ratio of 0.61 suggests that the stock may not be justified at its current price given its growth expectations.
In comparison to its peers, Insulet Corp. has a P/E ratio of 49.67, which is much higher than Hologic, Inc. at 21.10, indicating a substantial premium for Insulet. The Cooper Companies, Inc. also trades at a lower P/E of 33.85, further emphasizing Insulet's overvaluation. Despite a strong return of 50.74% over the past year compared to the S&P 500's 10.26%, the current valuation metrics suggest that investors may be paying too much for future growth potential.