Is Puma Biotechnology, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Puma Biotechnology, Inc. has moved from attractive to very attractive, indicating a strong improvement in its valuation outlook. The company appears to be undervalued, supported by a P/E ratio of 5, a Price to Book Value of 1.90, and an EV to EBITDA ratio of 3.15, all of which suggest that the stock is trading at a discount relative to its earnings and assets.
In comparison to its peers, Puma Biotechnology's P/E ratio of 4.74 is significantly lower than Zevra Therapeutics, Inc. at 7.44, indicating a more favorable valuation. Additionally, the PEG ratio of 0.04 highlights its growth potential relative to its price, further reinforcing the undervaluation thesis. Notably, while Puma's stock has underperformed the S&P 500 in the short term, returning -9.69% over the past month compared to the index's 2.33%, it has delivered impressive returns year-to-date at 48.20%, outpacing the S&P 500's 12.22%.