Is Penumbra, Inc. overvalued or undervalued?

As of 24 April 2025, Penumbra, Inc. has moved from an expensive to a very expensive valuation grade. The company is currently overvalued, with a P/E ratio of 84, significantly higher than its peers such as Insulet Corp. at 49.67 and Hologic, Inc. at 21.10. Additionally, Penumbra's EV to EBITDA stands at 69.41, while its PEG ratio is notably high at 6.49, indicating that the stock price may not be justified by its growth prospects.
In comparison to its peers, Penumbra's valuation metrics suggest a premium that is not supported by its financial performance, as evidenced by a ROCE of 13.49% and ROE of 9.83%. The company's recent stock performance has also lagged behind the S&P 500, particularly over the past month, where it has declined by 5.24% compared to the index's gain of 3.83%. Overall, these factors reinforce the conclusion that Penumbra, Inc. is overvalued in the current market environment.