Is Vericel Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Vericel Corp. has moved from attractive to fair, indicating a shift in its perceived value. Based on the current metrics, Vericel appears to be overvalued, particularly highlighted by its P/E ratio of 732, which is significantly higher than the industry average, and an EV to EBITDA of 517.61, suggesting an inflated valuation relative to earnings. Additionally, the PEG ratio stands at 1.35, which, while not excessively high, does not compensate for the other concerning ratios.
In comparison to its peers, Vericel's P/E ratio of 732 starkly contrasts with Harmony Biosciences Holdings, which has a P/E of 11.40, and Amphastar Pharmaceuticals at 11.49, both of which are in a more attractive valuation range. Furthermore, Vericel's recent stock performance shows a 1-week return of 10.89%, significantly outperforming the S&P 500's 1.70% return, but it has underperformed over longer periods, with a year-to-date return of -35.68% compared to the S&P 500's 13.30%. This discrepancy in longer-term performance reinforces the notion that Vericel may be overvalued at its current price.