Is Phibro Animal Health Corp. overvalued or undervalued?

As of 7 May 2025, the valuation grade for Phibro Animal Health Corp. has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, with a P/E ratio of 21, a Price to Book Value of 3.67, and an EV to EBITDA ratio of 9.97. These metrics suggest that the company is trading at a reasonable valuation relative to its earnings and assets.
In comparison to its peers, Phibro Animal Health Corp. has a P/E ratio of 21.68, which is higher than some of its peers like Soleno Therapeutics, Inc., which has a negative P/E ratio of -20.32, and Arcutis Biotherapeutics, Inc., which also shows a negative P/E of -12.14. The PEG ratio for Phibro is notably low at 0.12, further supporting the argument for its undervaluation. Additionally, while Phibro's stock has outperformed the S&P 500 over the past year with a return of 38.66% compared to the S&P's 10.26%, its longer-term performance has lagged behind, suggesting potential for recovery.