Is Organon & Co. overvalued or undervalued?

As of 2 May 2024, the valuation grade for Organon & Co. moved from risky to very attractive, indicating a significant improvement in its investment appeal. The company appears undervalued, supported by a P/E ratio of 3, an EV to EBITDA ratio of 6.41, and a Price to Book Value of 4.59. In comparison, Exelixis, Inc. has a P/E ratio of 15.81 and an EV to EBITDA of 11.97, while Alkermes Plc shows a P/E of 13.77 and an EV to EBITDA of 9.41, highlighting Organon’s relative undervaluation within the industry.
Despite recent struggles, with a year-to-date return of -27.28% compared to the S&P 500's 12.22%, the substantial drop in Organon's stock price may present a buying opportunity given its attractive valuation metrics.