Is Biogen, Inc. overvalued or undervalued?

As of 1 May 2025, Biogen, Inc. has moved from a very attractive to an attractive valuation grade. The company is currently considered overvalued based on its financial metrics. The P/E ratio stands at 13, while the industry average P/E is significantly higher at approximately 21.64, indicating a disparity in valuation. Additionally, Biogen's EV to EBITDA ratio is 9.17, which is lower than its peer Amgen, Inc. at 14.12, further supporting the overvaluation claim.
In comparison to its peers, Biogen's PEG ratio of 0.61 suggests it is more favorably priced in terms of growth expectations than Gilead Sciences, which has a PEG of 0.78. However, the overall performance of Biogen has been underwhelming, with a year-to-date return of -18.41%, contrasting sharply with the S&P 500's positive return of 2.44% during the same period. This underperformance, alongside the valuation metrics, reinforces the conclusion that Biogen, Inc. is currently overvalued.