Is Aurinia Pharmaceuticals, Inc. overvalued or undervalued?

As of 17 October 2025, Aurinia Pharmaceuticals, Inc. has moved from a very attractive to a fair valuation grade. The company appears to be fairly valued given its current P/E ratio of 19, a Price to Book Value of 3.16, and an EV to EBITDA ratio of 11.23. In comparison, its peer Rhythm Pharmaceuticals, Inc. has a significantly higher P/E of -36.41, while Merus NV shows a P/E of -13.18, indicating that Aurinia is relatively better positioned within its peer group.
Despite the fair valuation, Aurinia has demonstrated strong performance with a year-to-date return of 28.62%, outperforming the S&P 500's return of 13.30% during the same period. However, over the longer term, the company's 5-year return of -25.44% starkly contrasts with the S&P 500's impressive 91.29% return, suggesting potential challenges ahead. Overall, Aurinia Pharmaceuticals is fairly valued in the current market context.