Is Exelixis, Inc. overvalued or undervalued?

As of 3 May 2024, the valuation grade for Exelixis, Inc. has moved from very attractive to attractive, indicating a shift in market perception. The company is currently considered fairly valued. Key ratios include a P/E ratio of 17, an EV to EBITDA of 12.68, and a PEG ratio of 0.08, which suggests strong growth potential relative to its price.
In comparison to peers, Exelixis has a P/E ratio of 16.50, which is higher than Royalty Pharma Plc at 10.83 but lower than Incyte Corp. at 301.24. The EV to EBITDA ratio of Exelixis is also competitive when compared to United Therapeutics Corp. at 11.79. Notably, Exelixis has demonstrated impressive returns, outperforming the S&P 500 with a 1-year return of 95.36% compared to the index's 10.26%, reinforcing its valuation narrative.