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 a shift in its perceived value. The company appears to be overvalued based on its current metrics, with a P/E ratio of 35, a Price to Book Value of 4.89, and an EV to EBITDA of 21.72. In comparison, Viatris, Inc. has a higher 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 long-term outlook is less favorable, with a 5-year return of 36.66% against the S&P 500's 91.29%. This suggests that while Neurocrine has outperformed the benchmark in the short term, its valuation metrics indicate it may not be a sustainable investment at current levels.