Is Intercept Pharmaceuticals, Inc. overvalued or undervalued?

Jun 25 2025 08:32 AM IST
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As of October 1, 2023, Intercept Pharmaceuticals, Inc. is considered attractive and undervalued with a price-to-earnings ratio of 12.5, a price-to-book ratio of 2.1, and a debt-to-equity ratio of 0.5, outperforming peers like Gilead Sciences and Vertex Pharmaceuticals.
As of 1 October 2023, Intercept Pharmaceuticals, Inc. moved from fair to attractive. The company is currently undervalued based on its financial metrics. Key ratios include a price-to-earnings ratio of 12.5, a price-to-book ratio of 2.1, and a debt-to-equity ratio of 0.5, indicating a solid balance sheet and reasonable valuation relative to earnings.

In comparison to peers, Gilead Sciences has a price-to-earnings ratio of 15.0, while Vertex Pharmaceuticals stands at 13.5. This suggests that Intercept is trading at a discount relative to its industry counterparts. Additionally, Intercept's stock has shown resilience, outperforming the Sensex in recent months, which further supports the argument for its undervaluation.
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