Is Neurocrine Biosciences, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Neurocrine Biosciences, Inc. has moved from fair to expensive, indicating that the stock is overvalued. The company exhibits a P/E ratio of 35, a Price to Book Value of 4.89, and an EV to EBITDA of 21.72, all of which suggest a premium valuation compared to its peers. In comparison, Viatris, Inc. has a P/E of 44.86, while Walgreens Boots Alliance, Inc. shows a negative P/E, highlighting the mixed performance within the industry.
Despite recent stock performance showing a 1-year return of 18.26% compared to the S&P 500's 14.08%, the longer-term view reveals a stark contrast, with Neurocrine's 3-year and 5-year returns lagging significantly behind the index at 26.14% and 36.66%, respectively, compared to the S&P 500's 81.19% and 91.29%. This suggests that while Neurocrine has had some short-term success, its overall valuation appears stretched in the current market context.