Is Catalyst Pharmaceuticals, Inc. overvalued or undervalued?

As of 26 February 2025, the valuation grade for Catalyst Pharmaceuticals, Inc. has moved from attractive to very attractive, indicating a strong positive outlook for the company. The analysis suggests that the company is undervalued, particularly when considering its impressive financial metrics. The P/E ratio stands at 17, which is significantly lower than the peer average of 28.13 for Supernus Pharmaceuticals, indicating that Catalyst may be trading at a discount relative to its peers. Additionally, the PEG ratio of 0.11 further supports the undervaluation narrative, as it suggests that the company is growing at a much faster rate than its current valuation reflects.
In comparison to its peers, Catalyst Pharmaceuticals shows a favorable position with an EV/EBITDA ratio of 9.56 compared to Supernus Pharmaceuticals' 8.72 and CureVac NV's 2.79, reinforcing its competitive edge. The company's ROCE of 108.10% and ROE of 23.98% also highlight its efficient use of capital and strong profitability. Notably, despite a recent dip in stock price, Catalyst has outperformed the S&P 500 over the past year with a return of 41.89% compared to the index's 10.26%, further emphasizing its potential for growth and value.