Is Tandem Diabetes Care, Inc. overvalued or undervalued?

As of 3 August 2022, Tandem Diabetes Care, Inc. moved from a fair to risky valuation grade, indicating a deterioration in its investment appeal. The company appears to be overvalued, particularly given its negative P/E ratio and poor return metrics, with a Price to Book Value of 8.91 and an EV to Sales ratio of 1.41. Additionally, the latest ROCE and ROE stand at -65.75% and -69.96%, respectively, highlighting significant operational challenges.
In comparison to its peers, Tandem's valuation is notably weaker, with TransMedics Group, Inc. trading at a fair valuation with a P/E of 50.23, while Integer Holdings Corp. is categorized as very expensive with a P/E of 41.17. The stock has underperformed significantly against the S&P 500, with a year-to-date return of -63.24% compared to the index's 12.22%, reinforcing the notion that the stock is overvalued in its current state.