Is Veracyte, Inc. overvalued or undervalued?

As of 24 October 2025, the valuation grade for Veracyte, Inc. has moved from expensive to attractive, indicating a shift towards a more favorable assessment. The company appears to be undervalued based on its current metrics, particularly with a P/E ratio of 56, a PEG ratio of 0.12, and an EV to EBITDA ratio of 35.87, which are relatively appealing compared to its peers. For instance, iRhythm Technologies, Inc. has a significantly higher P/E of -111.60, while TransMedics Group, Inc. shows a P/E of 50.23, suggesting that Veracyte is better positioned in terms of valuation.
In terms of recent performance, Veracyte's stock has returned 12.05% over the past year, which is notably lower than the S&P 500's return of 16.90%, but it has outperformed the index over the last three years with a return of 128.70% compared to 78.85%. This performance, alongside its attractive valuation metrics, reinforces the conclusion that Veracyte, Inc. is currently undervalued in the market.