Is Innoviva, Inc. overvalued or undervalued?

As of 6 August 2025, the valuation grade for Innoviva, Inc. has moved from risky to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its current metrics, with a P/E ratio of 15, an EV to EBITDA of 9.21, and a PEG ratio of 0.20, which suggests that despite its growth potential, the stock is priced high relative to its earnings growth. In comparison, Ligand Pharmaceuticals, Inc. has a much higher P/E ratio of 16.41, while MannKind Corp. shows a P/E of 38.35, both indicating that Innoviva's valuation is not the most attractive in its peer group.
In terms of recent performance, Innoviva's stock has returned 14.64% year-to-date, slightly outperforming the S&P 500's return of 12.22% in the same period, but it has lagged behind the index over longer horizons, particularly in the 3-year and 5-year returns. This performance context reinforces the notion that while the stock may have short-term appeal, its current valuation metrics suggest it is not a compelling long-term investment.