Is ACADIA Pharmaceuticals, Inc. overvalued or undervalued?

As of 6 November 2024, the valuation grade for ACADIA Pharmaceuticals, Inc. has moved from expensive to very attractive, indicating a significant shift in its perceived value. The company is currently considered undervalued, with a P/E ratio of 16, which is notably lower than the industry average. Additionally, the EV to EBITDA ratio stands at 29.59, while the ROCE is an impressive 92.98%, suggesting strong operational efficiency.
In comparison to its peers, ACADIA Pharmaceuticals shows a more favorable valuation profile than Insmed, Inc. and Perrigo Co. Plc, which are classified as risky with P/E ratios of -21.43 and -130.48, respectively. This highlights ACADIA's relative strength in the market. Furthermore, the company's stock has outperformed the S&P 500 over the past year, returning 46.93% compared to the index's 10.26%, reinforcing the notion that ACADIA is currently undervalued.