Is Surmodics, Inc. overvalued or undervalued?

As of 31 July 2024, the valuation grade for Surmodics, Inc. has moved from attractive to risky, indicating a significant deterioration in its financial health. The company is currently overvalued, as evidenced by its Price to Book Value of 3.81 and an EV to EBITDA ratio of 91.89, which are considerably higher than industry norms. Additionally, Surmodics has a negative ROCE of -3.57% and a ROE of -10.26%, highlighting its struggles to generate returns for shareholders.
In comparison to its peers, Surmodics' P/E ratio is notably negative at -36.74, while Artivion, Inc. also shows a risky valuation with a P/E of -111.78, and IRadimed Corp. stands out as fairly valued with a P/E of 37.26. The company's recent performance has lagged behind the S&P 500, with a year-to-date return of -26.77% compared to the index's 2.44%, further reinforcing the notion that Surmodics is currently overvalued in the market.