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. This suggests that the company is overvalued at its current price of $190.23. Key valuation ratios include a P/E ratio of 27, an EV to EBITDA of 23.83, and a Price to Book Value of 4.02, all indicating a premium compared to industry peers. For instance, BridgeBio Pharma, Inc. has a P/E of -14.12, while Elanco Animal Health, Inc. shows a P/E of 19.25, highlighting Krystal's elevated valuation.
In terms of performance, Krystal Biotech has outperformed the S&P 500 across multiple periods, with a 3-year return of 177.42% compared to the S&P 500's 81.19%. This strong performance, however, does not negate the fact that the stock is currently considered very expensive relative to its peers and valuation metrics.