Is Innoviva, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Innoviva, Inc. has moved from attractive to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its current metrics, with a P/E ratio of 15, a Price to Book Value of 3.16, and an EV to EBITDA of 9.21. In comparison, its peer Ligand Pharmaceuticals, Inc. has a significantly higher P/E ratio of 16.41, while MannKind Corp. shows a P/E of 38.35, suggesting that Innoviva's valuation may not be justified relative to its peers.
The company's ROCE stands at a strong 28.07%, and its ROE is 20.43%, indicating solid profitability. However, these strengths are overshadowed by its high valuation ratios. Although specific return data is not available, the absence of comparative performance metrics against the S&P 500 adds to the uncertainty surrounding its current valuation status. Overall, Innoviva, Inc. is deemed overvalued in the current market context.