Is Theravance Biopharma, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Theravance Biopharma, Inc. moved from attractive to expensive, indicating a shift towards overvaluation. The company is considered overvalued based on its current financial metrics. Key ratios include a Price to Book Value of 3.39, an EV to EBIT of -9.87, and an EV to EBITDA of -11.24, which highlight significant losses and an unfavorable valuation relative to earnings.
In comparison to peers, Theravance Biopharma's P/E ratio stands at 48.04, while Evolus, Inc. has a P/E of -8.24 and Aclaris Therapeutics, Inc. at -4.88, suggesting that Theravance is trading at a premium despite its losses. The industry context further emphasizes this, as the company's high valuation ratios do not align with its negative returns on capital and equity, which are -62.37% and -32.43%, respectively. Although specific return data is not available, the lack of positive returns relative to the S&P 500 reinforces the notion of overvaluation.