Is Incyte Corp. overvalued or undervalued?

As of 17 October 2025, Incyte Corp. has moved from an attractive to a fair valuation grade. The company appears to be overvalued based on its current metrics, with a P/E ratio of 301, a Price to Book Value of 3.63, and an EV to EBITDA of 36.85, all significantly higher than typical industry standards. In comparison, a peer like Incyte Corp. has a fair valuation with a P/E of 22.95 and an EV to EBITDA of 13.36, indicating that Incyte Corp. is trading at a premium relative to its peers.
Despite recent strong performance, with a 1-year return of 31.82% compared to the S&P 500's 14.08%, the significant disparity in valuation ratios suggests that Incyte Corp. may not sustain this momentum in the long term. Overall, the company is overvalued in the current market context.