Is Theravance Biopharma, Inc. overvalued or undervalued?

As of 17 October 2025, Theravance Biopharma, Inc. has moved from an attractive to an expensive valuation grade. The company appears to be overvalued, particularly given its negative earnings and substantial losses reflected in its ratios. Key valuation metrics include a Price to Book Value of 3.39, an EV to EBIT of -9.87, and an EV to EBITDA of -11.24, all indicating significant financial challenges.
When compared to peers, Theravance's P/E ratio is notably high at 48.04, while Evolus, Inc. and Aclaris Therapeutics, Inc. show negative P/E ratios of -8.24 and -4.88, respectively, highlighting the relative overvaluation of Theravance. Despite its strong recent performance, with a year-to-date return of 51.54% compared to the S&P 500's 13.30%, the long-term outlook remains concerning, as evidenced by a 5-year return of -23.04% against the S&P's 91.29%.