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 ratio of 21.72, all of which suggest a premium valuation compared to its peers. For instance, Viatris, Inc. has a higher P/E of 44.86, while Walgreens Boots Alliance, Inc. shows a negative P/E, highlighting the relative valuation challenges faced by Neurocrine.
In terms of performance, Neurocrine's stock has returned 18.26% over the past year, outperforming the S&P 500's 14.08% return, but it has significantly lagged over longer periods, with a 36.66% return over five years compared to the S&P's 91.29%. This discrepancy in longer-term performance further supports the conclusion that Neurocrine may be overvalued given its current valuation ratios and peer comparisons.