Is Penumbra, Inc. overvalued or undervalued?

As of 15 August 2025, the valuation grade for Penumbra, Inc. has moved from expensive to very expensive, indicating a significant concern regarding its valuation. The company appears to be overvalued based on its high P/E ratio of 84, a Price to Book Value of 8.27, and an EV to EBITDA of 69.41, which are substantially above industry norms. In comparison, Hologic, Inc. has a P/E of 21.83 and an EV to EBITDA of 14.71, while The Cooper Companies, Inc. shows a P/E of 34.28 and an EV to EBITDA of 14.70, highlighting that Penumbra's valuation metrics are considerably higher than its peers.
Recent stock performance shows that Penumbra has underperformed relative to the S&P 500, with a 1-year return of 31.79% compared to the S&P 500's 17.14%, but it has lagged significantly over longer periods, such as the 3-year and 5-year returns, where it achieved only 31.81% and 25.13% respectively against the S&P 500's 70.41% and 96.61%. This trend reinforces the notion that the stock may be overvalued given its high valuation ratios and underwhelming long-term performance.