Is Zynex, Inc. overvalued or undervalued?

As of 29 April 2025, the valuation grade for Zynex, Inc. has moved from expensive to risky, indicating a deterioration in its perceived value. The company appears to be overvalued given its negative financial metrics, with a Price to Book Value of 3.30, an EV to EBIT of -14.15, and an EV to Sales ratio of 0.63. In comparison, peers such as CareDx, Inc. have a very attractive valuation with a P/E of -27.9089, while Organogenesis Holdings, Inc. is also risky with a P/E of 608.5864, highlighting Zynex's struggles within its industry.
The stock has significantly underperformed against the S&P 500, with a year-to-date return of -80.65% compared to the index's 12.22%. This stark contrast reinforces the notion that Zynex is currently overvalued, as its financial performance does not support its market price.