Is Vanta Bioscience overvalued or undervalued?

As of 10 July 2025, Vanta Bioscience's valuation grade has moved from risky to does not qualify, indicating a significant shift in its perceived investment quality. The company appears to be overvalued based on its current metrics, with a PE ratio of 16.67, an EV to EBITDA ratio of 11.45, and a PEG ratio of 0.16, which suggests limited growth potential relative to its price.
In comparison to its peers, Vanta's PE ratio is notably lower than that of Altius Telecom, which stands at 53.33, and significantly below the average of other companies in the healthcare services sector, such as Embassy Office REIT at 22.77 and Inventurus Knowledge at 55.73. Furthermore, Vanta's return on capital employed (ROCE) is just 5.37%, which is relatively low, indicating inefficiencies in generating returns from its capital investments. The company's stock has underperformed significantly against the Sensex, with a year-to-date decline of 40.57% compared to a 6.46% gain in the index, reinforcing the notion that Vanta Bioscience is currently overvalued.