Is Organogenesis Holdings, Inc. overvalued or undervalued?

As of 8 May 2025, the valuation grade for Organogenesis Holdings, Inc. has moved from expensive to risky. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 28, significantly higher than the industry average, while the EV to EBITDA ratio is 9.24. Additionally, the PEG ratio is notably low at 0.32, indicating potential overvaluation relative to growth expectations.
In comparison to its peers, Organogenesis has a P/E ratio of 608.59, which is drastically higher than Castle Biosciences, Inc. at -71.36 and Orthofix Medical, Inc. at -4.76. This suggests that Organogenesis is trading at a premium compared to its risky peers. Furthermore, while the company has shown strong returns year-to-date at 48.44%, it has underperformed against the S&P 500 over the last three and five years, which returned 70.41% and 96.61%, respectively. This underperformance reinforces the notion that the stock may be overvalued in the current market context.