Is Penumbra, Inc. overvalued or undervalued?

As of 21 November 2025, the valuation grade for Penumbra, Inc. moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company appears 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, which are substantially higher than industry norms. In comparison, peers such as Hologic, Inc. have a P/E ratio of 21.83 and an EV to EBITDA of 14.71, showcasing a stark contrast in valuation metrics.
Despite Penumbra's strong recent performance, with a year-to-date return of 21.47% compared to the S&P 500's 12.26%, the elevated valuation ratios suggest that the stock may not be justified at its current price level. The combination of these factors reinforces the conclusion that Penumbra, Inc. is overvalued in the current market.