Is Pacira Biosciences, Inc. overvalued or undervalued?

As of 6 November 2024, the valuation grade for Pacira Biosciences, Inc. has moved from attractive to risky, indicating a shift in market perception. The company is currently considered overvalued, with a P/E ratio of 19, which is higher than the peer average of 18.29 for companies like Supernus Pharmaceuticals, Inc. (P/E of 28.13) and CureVac NV (P/E of 6.06). Additionally, the EV to EBITDA ratio stands at 7.56, which is also above the industry average, suggesting that the company may not be justifying its valuation based on earnings potential.
In terms of financial performance, Pacira has a ROCE of 10.10% and an ROE of 7.73%, which are relatively modest compared to its peers. The company's recent stock performance has been mixed, with a year-to-date return of 31.32%, significantly outpacing the S&P 500's 2.44% return, but it has underperformed over longer periods, including a one-year decline of 13.65%. Overall, the combination of high valuation ratios and underwhelming financial metrics leads to the conclusion that Pacira Biosciences is overvalued in the current market environment.