Is Collegium Pharmaceutical, Inc. overvalued or undervalued?

As of 28 August 2025, the valuation grade for Collegium Pharmaceutical, Inc. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its P/E ratio of 15, which is significantly lower than its peer average P/E of approximately 22.77, and an EV to EBITDA ratio of 4.89 compared to the peer average of 5.28. Additionally, the Price to Book Value stands at 4.25, suggesting a premium over its book value relative to peers.
In comparison to its peers, Ligand Pharmaceuticals, Inc. has a notably high P/E ratio of -67.27, while Innoviva, Inc. shows an expensive valuation with a P/E of 16.41. Despite a strong return of 109.14% over the past three years, Collegium's recent performance has lagged behind the S&P 500, with a 1-year return of -6.76% compared to the S&P 500's 17.14%. This further supports the conclusion that Collegium Pharmaceutical, Inc. is currently overvalued.