Is Vericel Corp. overvalued or undervalued?

As of 8 September 2025, the valuation grade for Vericel Corp. has moved from very attractive to fair, indicating a shift in its perceived value. The company appears overvalued given its high P/E ratio of 732, a price-to-book value of 7.38, and an EV to EBITDA of 517.61, which are significantly above typical industry benchmarks. In comparison, peers such as Madrigal Pharmaceuticals, Inc. and Cytokinetics, Inc. show negative P/E ratios of -35.88 and -10.74, respectively, highlighting the relative overvaluation of Vericel.
Recent stock performance has been poor, with a year-to-date return of -42.00% compared to a positive 12.22% return for the S&P 500, and a one-year return of -31.28% against 17.14% for the index. This underperformance reinforces the notion that Vericel is currently overvalued in the market.