Is Neurocrine Biosciences, Inc. overvalued or undervalued?

As of 20 June 2025, the valuation grade for Neurocrine Biosciences, Inc. has moved from expensive to very expensive. The company is currently overvalued based on its P/E ratio of 35, which significantly exceeds the industry average, indicating a premium that may not be justified by its earnings potential. Additionally, the EV to EBITDA ratio stands at 21.72, further highlighting the high valuation relative to earnings before interest, taxes, depreciation, and amortization.
In comparison to peers, Royalty Pharma Plc, which is rated attractive, has a P/E of 10.83, while Incyte Corp. shows a P/E of 301.24, indicating that Neurocrine's valuation is not only high compared to its industry but also when juxtaposed with these specific competitors. The company's recent stock performance has been underwhelming, with a year-to-date return of -7.84%, contrasting with the S&P 500's positive return of 2.44%, reinforcing the notion that the stock may be overvalued in the current market context.