Is Collegium Pharmaceutical, Inc. overvalued or undervalued?

As of 8 May 2025, the valuation grade for Collegium Pharmaceutical, Inc. has moved from attractive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 15, an EV to EBITDA of 4.89, and a ROE of 28.03%.
In comparison to its peers, Collegium's P/E ratio of 14.78 is lower than Innoviva, Inc., which has a P/E of 15.38, while Ligand Pharmaceuticals, Inc. is significantly negative at -27.37. Additionally, the company's ROCE of 16.93% indicates a solid return on capital employed. Despite a recent underperformance over the past year compared to the S&P 500, where Collegium returned -5.68% against the index's 10.26%, its strong ratios suggest it is positioned well within its industry.