Is OrthoPediatrics Corp. overvalued or undervalued?

As of 6 November 2023, the valuation grade for OrthoPediatrics Corp. has moved from expensive to risky, indicating a significant shift in its perceived value. The company is currently considered overvalued, particularly given its negative P/E ratio due to losses, a Price to Book Value of 1.51, and an EV to Sales ratio of 2.55. Additionally, the company's ROCE and ROE are both negative at -8.46% and -9.19%, respectively, further highlighting its financial struggles.
In comparison to its peers, OrthoPediatrics Corp. has a less favorable EV to EBITDA ratio of -46.49, while Paragon 28, Inc. and SI-BONE, Inc. report even worse figures of -52.83 and -27.52, respectively. Conversely, MiMedx Group, Inc. stands out with a fair valuation and a P/E ratio of 21.59, suggesting that OrthoPediatrics is lagging behind in performance and valuation metrics. The company's stock has underperformed significantly against the S&P 500, with a year-to-date decline of 11.17% compared to the index's 2.44% gain, reinforcing the notion that it is currently overvalued.