Is Catalyst Pharmaceuticals, Inc. overvalued or undervalued?

As of 30 June 2025, the valuation grade for Catalyst Pharmaceuticals, Inc. has moved from attractive to very attractive, indicating a strong improvement in its valuation outlook. The company appears to be undervalued, supported by a P/E ratio of 17, a PEG ratio of 0.11, and an impressive ROCE of 108.10%. In comparison to peers, Catalyst's P/E ratio is significantly lower than Crinetics Pharmaceuticals, Inc. which has a P/E of -8.95, and much lower than Supernus Pharmaceuticals, Inc. with a P/E of 37.12, highlighting its relative attractiveness in the market.
Despite recent challenges, as evidenced by a year-to-date return of -2.25% compared to the S&P 500's 12.22%, Catalyst's long-term performance is noteworthy, with a remarkable 507.14% return over the past five years versus the S&P 500's 96.61%. This long-term outperformance, coupled with its strong valuation metrics, reinforces the view that Catalyst Pharmaceuticals is currently undervalued.