Is Penumbra, Inc. overvalued or undervalued?

As of 3 October 2025, the valuation grade for Penumbra, Inc. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is considered overvalued based on its high valuation ratios, including a P/E ratio of 84, an EV to EBITDA of 69.41, and a PEG ratio of 6.49. Comparatively, peers like Hologic, Inc. have a fair P/E of 21.83, while The Cooper Companies, Inc. also falls into the very expensive category with a P/E of 34.28, highlighting Penumbra's substantial premium over its industry.
In terms of stock performance, Penumbra has shown a 31.32% return over the past year, which outpaces the S&P 500's 17.82% return, yet it significantly lags behind the S&P 500's 100.56% return over the past five years. This suggests that while the stock has performed well recently, its high valuation may not be sustainable in the long term.