Is Alkermes Plc overvalued or undervalued?

As of 3 January 2025, Alkermes Plc's valuation grade has moved from fair to attractive, indicating a more favorable assessment of its value. The company is currently considered undervalued based on its financial metrics. Key ratios include a P/E ratio of 15, an EV to EBITDA of 10.67, and a remarkable ROCE of 61.70%.
In comparison to its peers, Alkermes has a P/E ratio of 14.09, which is lower than United Therapeutics Corp.'s P/E of 16.99, suggesting that Alkermes is trading at a discount relative to some of its attractive peers. Additionally, while Neurocrine Biosciences is deemed expensive with a P/E of 35.07, Alkermes' valuation appears more compelling. The company's recent stock performance has outpaced the S&P 500 over the past year, reinforcing the notion that it may be undervalued in the current market.