Is Insulet Corp. overvalued or undervalued?

As of 7 August 2025, the valuation grade for Insulet Corp. has moved from fair to very expensive, indicating a significant shift in its market perception. The company appears overvalued based on its current valuation ratios, including a P/E ratio of 51, a Price to Book Value of 16.49, and an EV to EBITDA of 51.48. In comparison to peers, Insulet's P/E ratio is notably higher than ResMed, Inc. at 37.73 and Zimmer Biomet Holdings, Inc. at 29.65, which further supports the conclusion of overvaluation.
Recent stock performance shows that while Insulet has outperformed the S&P 500 year-to-date with a return of 27.75% compared to 12.22%, its longer-term returns over three and five years have lagged behind the index, with returns of 30.79% and 48.21% respectively, versus 70.41% and 96.61% for the S&P 500. This trend suggests that despite short-term gains, the company's elevated valuation may not be sustainable in the long run.