Is BioMarin Pharmaceutical, Inc. overvalued or undervalued?

As of 2 May 2025, BioMarin Pharmaceutical, Inc. has moved from an expensive to a fair valuation grade. The company is currently fairly valued, with a P/E ratio of 20, an EV to EBITDA of 14.21, and a PEG ratio of 0.14. In comparison to its peers, BioMarin's P/E ratio of 19.19 is significantly lower than that of Bio-Techne Corp., which stands at 37.50, indicating that BioMarin may offer better value relative to its earnings.
Despite the fair valuation, BioMarin has underperformed in recent stock returns compared to the S&P 500, with a year-to-date decline of 17.72% versus a gain of 2.44% for the index. This performance, alongside a relatively low ROE of 9.49% and ROCE of 12.21%, suggests that while the stock is fairly valued, it may still face challenges in achieving growth compared to its peers.