Is Medifast, Inc. overvalued or undervalued?

As of 7 August 2025, the valuation grade for Medifast, Inc. has moved from expensive to attractive, indicating a shift in perception regarding its valuation. The company appears to be undervalued, particularly given its Price to Book Value of 0.66 and an EV to EBIT ratio of 2.98, despite the challenges reflected in its negative earnings metrics.
In comparison to its peers, Medifast's P/E ratio stands at 62.80, while Thoughtworks Holding, Inc. and Chegg, Inc. exhibit significantly lower P/E ratios of -25.45 and -22.62, respectively, highlighting the relative attractiveness of Medifast within this group. Additionally, the company has underperformed against the S&P 500, with a year-to-date return of -17.31% compared to the index's 12.22%, and a staggering -91.61% return over the past five years, suggesting that while the stock may be undervalued, it has faced significant headwinds in the market.