Is Incyte Corp. overvalued or undervalued?

As of 24 April 2025, the valuation grade for Incyte Corp. has moved from fair to attractive, indicating a shift in perception regarding its investment potential. The company is currently considered undervalued, particularly when examining its headline ratios, which include a P/E ratio of 301, an EV to EBITDA of 36.85, and a ROCE of 16.27%.
In comparison to its peers, Incyte Corp. stands out with its high P/E ratio, while Alnylam Pharmaceuticals, Inc. is categorized as risky with a negative P/E of -827.79. This stark contrast highlights Incyte's relative valuation attractiveness despite its elevated P/E. Additionally, the company's recent stock performance has lagged behind the S&P 500, particularly over the 3-year and 5-year periods, which may further support its undervalued status in the current market context.