Is Biogen, Inc. overvalued or undervalued?

As of 5 August 2025, Biogen, Inc. has moved from a very attractive to an attractive valuation grade. The company appears to be undervalued, with a P/E ratio of 13, which is lower than the peer average of approximately 13.57, and an EV to EBITDA ratio of 9.17 compared to the peer average of 8.89. Additionally, the PEG ratio stands at 0.61, indicating potential growth at a reasonable price.
In comparison to its peers, Biogen's ROCE of 10.29% and ROE of 10.03% suggest it is performing well relative to its capital efficiency. However, the company's recent stock performance has lagged significantly behind the S&P 500, with a YTD return of -5.96% compared to the index's 12.22%. This underperformance reinforces the notion that Biogen may be undervalued in the current market context.