Is Vericel Corp. overvalued or undervalued?

As of 3 October 2025, Vericel Corp. has moved from a fair to a very attractive valuation grade. The company appears to be undervalued, particularly when considering its P/E ratio of 732, which is significantly higher than the peer average of 235.86, and an EV to EBITDA ratio of 517.61, indicating potential overvaluation relative to earnings before interest, taxes, depreciation, and amortization. Additionally, the PEG ratio stands at 1.35, suggesting that the stock may be undervalued in relation to its growth rate.
In comparison to its peers, Vericel Corp. has a much higher P/E ratio than Madrigal Pharmaceuticals, which is at -35.88, and Cytokinetics, which is at -10.74, both of which are considered risky investments. Despite the attractive valuation grade, Vericel has underperformed against the S&P 500 year-to-date, with a return of -40.92% compared to the index's 14.18%. However, over the last three years, Vericel has returned 42.09%, while the S&P 500 returned 82.57%, highlighting a mixed performance relative to the broader market.