Is ACADIA Pharmaceuticals, Inc. overvalued or undervalued?

As of 6 August 2025, the valuation grade for ACADIA Pharmaceuticals, Inc. has moved from very attractive to attractive. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 16, an EV to EBIT of 34.05, and an EV to EBITDA of 29.59, which are higher than some of its peers, such as Exelixis, Inc. with a P/E of 15.81 and Alkermes Plc with an EV to EBITDA of 9.41.
In comparison to the S&P 500, ACADIA has shown strong one-year returns of 51.59%, significantly outperforming the index's 17.14%. However, over a three-year period, it lags behind the S&P 500, which returned 70.41%, indicating potential concerns about long-term growth. Overall, the current valuation suggests that investors may be paying a premium for ACADIA Pharmaceuticals, Inc. relative to its peers and historical performance.