Is PROCEPT BioRobotics Corp. overvalued or undervalued?
As of November 4, 2021, PROCEPT BioRobotics Corp. is considered overvalued and risky due to its negative P/E ratio and poor financial metrics, with a year-to-date decline of 27.05%, contrasting sharply with its peers and the S&P 500's modest gain.
As of 4 November 2021, the valuation grade for PROCEPT BioRobotics Corp. has moved from does not qualify to risky, indicating a shift in perception regarding its financial health. The company is currently overvalued, as evidenced by its negative P/E ratio and troubling financial metrics. The Price to Book Value stands at 8.94, while the EV to EBITDA and EV to EBIT ratios are at -35.41 and -33.38, respectively, highlighting significant losses.In comparison to its peers, PROCEPT BioRobotics Corp. shows a stark contrast with TransMedics Group, Inc., which has a P/E ratio of 94.14 and is rated fair, and iRhythm Technologies, Inc., which is also risky with a P/E of -70.04. The company's return performance has been underwhelming, with a year-to-date decline of 27.05%, compared to a modest gain of 2.44% for the S&P 500, further reinforcing the notion that it is overvalued in its current state.
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