Is Penumbra, Inc. overvalued or undervalued?

As of 10 October 2025, the valuation grade for Penumbra, Inc. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, as evidenced by its high P/E ratio of 84, a Price to Book Value of 8.27, and an EV to EBITDA of 69.41, all of which are substantially above industry norms.
In comparison to peers, Penumbra's P/E ratio is notably higher than The Cooper Companies, which has a P/E of 34.28, and Baxter International, which stands at 28.68. The PEG ratio of 6.49 further underscores the overvaluation, as it suggests that the stock is priced excessively relative to its growth rate. While Penumbra has shown a strong return of 35.26% over the past year, this is still below the S&P 500's return of 13.36% during the same period, reflecting a disparity in performance relative to the broader market.