Is Vericel Corp. overvalued or undervalued?

As of 19 September 2025, the valuation grade for Vericel Corp. has moved from fair to very attractive, indicating a significant improvement in its perceived value. Despite this positive shift, the company appears to be overvalued based on its current metrics, particularly the P/E ratio of 732, which is substantially higher than the industry average. Additionally, the EV to EBITDA ratio stands at 517.61, and the Price to Book Value is 7.38, both suggesting that the stock is priced at a premium compared to its earnings and book value.
In comparison to its peers, Vericel Corp. has a P/E ratio of 235.86, which is notably higher than Harmony Biosciences Holdings, Inc. at 11.40 and Amphastar Pharmaceuticals, Inc. at 11.49, both of which are categorized as attractive. This disparity in valuation ratios reinforces the notion that Vericel is overvalued relative to its industry counterparts. Furthermore, while the stock has shown a return of 22.22% over the past three years, it has significantly underperformed against the S&P 500, which returned 70.89% during the same period, further highlighting concerns about its current valuation.