Is Penumbra, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Penumbra, Inc. has moved from very expensive to expensive. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 84, an EV to EBITDA of 69.41, and a PEG ratio of 6.49, all of which significantly exceed those of its peers. For instance, Hologic, Inc. has a P/E of 21.83 and an EV to EBITDA of 14.71, indicating that Penumbra is trading at a premium compared to its industry counterparts.
In terms of recent performance, Penumbra's stock has returned 23.11% over the past year, outperforming the S&P 500's 14.08% return, but it has lagged behind the index over longer periods, such as the 3-year and 5-year returns. This suggests that while the stock has shown some short-term strength, its high valuation ratios raise concerns about its sustainability moving forward.