Is Semler Scientific, Inc. overvalued or undervalued?

As of 13 May 2025, the valuation grade for Semler Scientific, Inc. has moved from attractive to risky, indicating a shift in the company's perceived financial health. The company is currently considered overvalued. Key ratios include a P/E ratio of 24, an EV to EBITDA of 27.71, and a Price to Book Value of 2.32, which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to peers, Semler's P/E ratio of 20.41 is higher than that of Butterfly Network, Inc., which is also rated risky with a P/E of -8.99, and Bioventus, Inc. with a P/E of 327.43, indicating significant valuation discrepancies within the sector. Additionally, Semler's return over the past year at 14.56% outperformed the S&P 500's return of 10.26%, but the overall trend shows a decline year-to-date of -22.25%, further reinforcing the notion that the stock may be overvalued in its current market context.