Is Organogenesis Holdings, Inc. overvalued or undervalued?

As of 8 May 2025, the valuation grade for Organogenesis Holdings, Inc. has moved from attractive to risky, indicating a shift in the perception of its financial health. The company is currently considered overvalued based on its high P/E ratio of 28, compared to peers such as IRadimed Corp. with a P/E of 37.26 and BioLife Solutions, Inc. which shows a negative P/E. Additionally, the EV to EBITDA ratio stands at 52.77, significantly higher than the industry average, while the ROCE and ROE are notably low at 2.03% and 3.72%, respectively.
In comparison to its peers, Organogenesis Holdings, Inc. has a PEG ratio of 0.32, which is relatively attractive, yet the overall financial metrics suggest underlying risks. The company's recent stock performance has outpaced the S&P 500 in the past year, returning 33.60% compared to the index's 10.26%, but this does not mitigate the concerns raised by its current valuation metrics. Overall, the combination of high valuation ratios and low returns on capital leads to the conclusion that Organogenesis Holdings, Inc. is overvalued.