Is Alkermes Plc overvalued or undervalued?

As of 7 July 2025, Alkermes Plc's valuation grade has moved from expensive to attractive, indicating a shift towards being undervalued. The company appears to be undervalued with a P/E ratio of 15, an EV to EBIT of 11.43, and an EV to EBITDA of 10.67, which are relatively favorable compared to its peers. For instance, Neurocrine Biosciences, Inc. has a significantly higher P/E ratio of 37.08, while Exelixis, Inc. shows an EV to EBITDA of 11.97, suggesting that Alkermes is more attractively priced within the industry.
Despite a year-to-date return of -0.73% compared to the S&P 500's 12.22%, Alkermes has shown a solid 3-year return of 31.42%, although it still lags behind the benchmark's 70.41%. This mixed performance reinforces the notion that while the stock may be undervalued, it has not kept pace with broader market gains recently.