Is Krystal Biotech, Inc. overvalued or undervalued?

As of 11 September 2025, the valuation grade for Krystal Biotech, Inc. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company appears overvalued based on its current metrics, with a P/E ratio of 27, a Price to Book Value of 4.02, and an EV to EBITDA of 23.83, all of which are higher than many of its peers. For instance, Elanco Animal Health, Inc. has a P/E of 19.25, and Halozyme Therapeutics, Inc. has an EV to EBITDA of 12.86, highlighting that Krystal Biotech is trading at a premium compared to these companies.
In terms of recent performance, while Krystal Biotech has shown strong returns over longer periods, such as 231.22% over the last five years, it has underperformed relative to the S&P 500 with a 1-year return of -12.11% compared to the index's 17.14%. This discrepancy reinforces the notion that the stock may be overvalued, as it struggles to keep pace with broader market gains despite its high valuation ratios.