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 is currently considered overvalued based on its P/E ratio of 15, which is lower than its peer average of approximately 16.41, and an EV to EBITDA ratio of 9.21, which is also competitive compared to its peers. Additionally, the PEG ratio stands out at 0.20, suggesting strong growth potential relative to its price.
In comparison to its peers, Ligand Pharmaceuticals, Inc. has a significantly higher P/E ratio of 67.27, while MannKind Corp. shows a P/E of 38.35, both indicating a higher valuation in the market. Despite Innoviva's strong ROCE of 28.07% and ROE of 20.43%, its recent stock performance has lagged behind the S&P 500, with a year-to-date return of -0.46% compared to the S&P 500's 13.30%. This underperformance reinforces the notion that Innoviva, Inc. is currently overvalued.