Is TransMedics Group, Inc. overvalued or undervalued?

As of 28 July 2025, the valuation grade for TransMedics Group, Inc. has moved from expensive to fair, indicating a shift in its perceived value. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 96, an EV to EBITDA of 66.22, and a PEG ratio of 0.53, which suggests that while the stock is priced high relative to earnings, its growth potential may justify this valuation.
In comparison to its peers, TransMedics Group has a P/E ratio of 50.23, which is significantly lower than the risky peers like Axonics, Inc. with a P/E of 492.77 and iRhythm Technologies, Inc. with a negative P/E of -111.60. This positions TransMedics more favorably within its industry. Additionally, despite recent volatility, the company's year-to-date return of 94.23% significantly outperformed the S&P 500's return of 12.22%, reinforcing the narrative that it may be a compelling investment at its current valuation.