Is Krystal Biotech, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Krystal Biotech, Inc. has moved from fair to very expensive, indicating a significant shift in its perceived value. The company appears overvalued based on its current metrics, including a P/E ratio of 27, a Price to Book Value of 4.02, and an EV to EBITDA ratio of 23.83. In comparison, peers such as Elanco Animal Health, Inc. have a P/E of 19.25, and Halozyme Therapeutics, Inc. has a fair valuation with a P/E of 15.92, highlighting Krystal's premium valuation relative to its industry.
Despite the overvaluation, Krystal Biotech has shown strong performance in recent returns, with a year-to-date return of 21.43% compared to the S&P 500's 13.30%. This outperformance over multiple periods, including a remarkable 268.52% return over five years, suggests that investor sentiment may still support the stock despite its high valuation metrics.