Is Vericel Corp. overvalued or undervalued?

As of 16 June 2025, the valuation grade for Vericel Corp. has moved from attractive to expensive, indicating a shift in perception regarding its market value. The company is currently overvalued, with a P/E ratio of 732, significantly higher than the industry average. Additionally, its Price to Book Value stands at 7.38, while the EV to EBITDA ratio is an alarming 517.61, suggesting that investors are paying a premium for the company's earnings potential.
In comparison to its peers, Vericel Corp. has a P/E ratio that is substantially higher than that of Harmony Biosciences Holdings, which has a P/E of 12.21, and Amphastar Pharmaceuticals, with a P/E of 9.81. This stark contrast highlights the overvaluation of Vericel Corp. Furthermore, the company's recent stock performance has been underwhelming, with a year-to-date return of -23.88%, compared to a modest 2.44% return for the S&P 500, reinforcing the notion that the stock may not justify its current valuation.