Is Illumina, Inc. overvalued or undervalued?

As of 31 October 2025, Illumina, Inc. has moved from fair to expensive in its valuation grade. The company appears overvalued, particularly when considering its P/E ratio of 26, which is significantly higher than the peer average of 19.09 for similar companies in the industry. Additionally, the EV to EBITDA ratio stands at 9.89, again above the peer average of 13.83, indicating a premium valuation compared to its peers. The PEG ratio is notably low at 0.07, suggesting that growth expectations may not justify the current price.
In the peer comparison, BioMarin Pharmaceutical, Inc. is valued fairly with a P/E of 15.17, while Elanco Animal Health, Inc. is also expensive with a P/E of 19.25. This further emphasizes Illumina's elevated valuation relative to its industry counterparts. Over the past year, Illumina's stock has returned -14.29%, underperforming the S&P 500's return of 19.89%, reinforcing the notion that the stock may not be a favorable investment at its current price.