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, particularly with a P/E ratio of 301, which is significantly higher than the peer average of approximately 22.95. Additionally, the EV to EBITDA ratio stands at 36.85, further indicating a premium valuation compared to industry norms.
In comparison to its peers, Incyte's Price to Book Value is 3.63, and its EV to Sales ratio is 2.47, both of which suggest that the stock is priced above its fundamental value. Notably, while Incyte has outperformed the S&P 500 in the short term with a 1-year return of 31.82% versus 14.08%, its long-term performance has lagged, with a 5-year return of -3.38% compared to the S&P's 91.29%. This discrepancy reinforces the notion that the stock may be overvalued relative to its growth prospects.