Is Krystal Biotech, Inc. overvalued or undervalued?

As of 6 May 2025, the valuation grade for Krystal Biotech, Inc. has moved from fair to expensive, indicating that the company is overvalued. The current P/E ratio stands at 27, significantly higher than the industry average, while the EV to EBITDA ratio is at 25.02, further suggesting overvaluation. Additionally, the PEG ratio of 0.25 indicates that the stock may not be justified at its current price given its growth prospects.
In comparison to peers, Halozyme Therapeutics, Inc. has a more attractive P/E ratio of 13.48 and an EV to EBITDA of 10.76, reinforcing the notion that Krystal Biotech is trading at a premium. Axsome Therapeutics, while risky, has a negative P/E, highlighting the disparity in valuation among these companies. Notably, Krystal Biotech has underperformed against the S&P 500 over the past year, with a return of -21.11% compared to the index's 10.26%, which further supports the conclusion that the stock is currently overvalued.