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 significant shift in its perceived value. The company appears to be overvalued based on its current metrics, with a P/E ratio of 19, a Price to Book Value of 1.51, and an EV to EBITDA of 7.56. In comparison, peers such as PTC Therapeutics, Inc. have a P/E of 5.85 and an EV to EBITDA of 3.17, while Supernus Pharmaceuticals, Inc. is considered expensive with a P/E of 37.12 and an EV to EBITDA of 13.83.
Recent stock performance shows that while Pacira has outperformed the S&P 500 year-to-date with a return of 41.45% compared to 12.22%, it has significantly lagged over the longer term, particularly in the 3-year and 5-year periods with returns of -50.28% and -56.15%, respectively. This long-term underperformance, coupled with its risky valuation grade, suggests that investors should approach Pacira with caution.