Is Prestige Consumer Healthcare, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Prestige Consumer Healthcare, Inc. has moved from very attractive to attractive, indicating a shift towards a more cautious outlook. The company appears to be overvalued based on its current metrics, with a P/E ratio of 20, a Price to Book Value of 2.48, and an EV to EBITDA ratio of 14.39, all of which are higher than those of its peers. For instance, Alkermes Plc has a P/E of 13.77 and an EV to EBITDA of 9.41, suggesting that Prestige is trading at a premium compared to its industry counterparts.
The company's recent performance shows a stark contrast to the broader market, with a year-to-date return of -20.49% compared to the S&P 500's gain of 13.30%. This underperformance, along with the high valuation ratios, reinforces the conclusion that Prestige Consumer Healthcare, Inc. is currently overvalued.