Is United Therapeutics Corp. overvalued or undervalued?

As of 16 June 2025, the valuation grade for United Therapeutics Corp. has moved from very attractive to attractive. The company is currently considered overvalued based on its valuation metrics. The P/E ratio stands at 19, which is higher than the peer average of approximately 17, while the EV to EBITDA ratio is 13.67, also above the peer average of around 12. The PEG ratio of 0.93 suggests that growth expectations are not fully reflected in the current price, yet the high ROCE of 38.08% and ROE of 17.79% indicate strong profitability.
In comparison to its peers, Alnylam Pharmaceuticals has a P/E of -827.79, while Royalty Pharma boasts a more favorable P/E of 10.83, highlighting the relative overvaluation of United Therapeutics. Additionally, the stock has underperformed against the S&P 500 over the past year, with a return of -9.38% compared to the index's 10.26%. Overall, the combination of high valuation ratios and recent performance suggests that United Therapeutics Corp. is currently overvalued.