Is Corcept Therapeutics, Inc. overvalued or undervalued?

As of 31 March 2025, the valuation grade for Corcept Therapeutics, Inc. has moved from fair to expensive, indicating that the company is overvalued. The current P/E ratio stands at 59, significantly higher than the industry average P/E of approximately 20.1, while the EV to EBITDA ratio is 66.34, also above the peer average of 30.94 for ACADIA Pharmaceuticals, which is considered very attractive. Additionally, the PEG ratio of 5.37 suggests that the stock is priced at a premium relative to its growth potential.
In comparison to its peers, Corcept Therapeutics is trading at a higher valuation than Insmed, Inc., which has a P/E of -21.43, and Prestige Consumer Healthcare, Inc., with a P/E of 20.10. The company's strong ROCE of 30.67% and ROE of 19.39% highlight operational efficiency, but these metrics do not justify the high valuation multiples. Notably, Corcept has outperformed the S&P 500 with a one-year return of 147.27%, reinforcing the perception of overvaluation given the current price levels.