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 that the stock is overvalued. The company exhibits 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 suggest a premium valuation compared to its peers. For instance, BridgeBio Pharma, Inc. has a P/E ratio of -14.12, while Elanco Animal Health, Inc. shows a P/E of 19.25, highlighting Krystal's relatively high valuation.
In terms of recent performance, Krystal Biotech has outperformed the S&P 500, with a 3-year return of 177.42% compared to the S&P 500's 81.19%. This strong performance contrasts with its current valuation metrics, reinforcing the conclusion that the stock is overvalued.