Things Getting Uglier for Guardant Health (GH)

It hasn't been a great afternoon session for Guardant Health investors, who have watched their shares sink by -6.8% to a price of $41.72. Some of you might be wondering if it's time to buy the dip. If you are considering this, make sure to check the company's fundamentals first to determine if the shares are fairly valued at today's prices.

Guardant Health, Inc., a precision oncology company, provides blood tests, data sets, and analytics in the United States and internationally. The company belongs to the Healthcare sector, which has an average price to earnings (P/E) ratio of 13.21 and an average price to book (P/B) ratio of 4.07.

In contrast, Guardant Health has a trailing 12 month P/E ratio of -10.1 and a P/B ratio of 25.6, showing that it is overvalued compared to its sector averages. In addtion, Guardant Health's PEG ratio is -0.56. Since it's negative, the company has negative growth expectations that cannot justify its elevated valuation.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.