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Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 3 stocks made the list for top value stocks in the Pharmaceuticals industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Pharmaceuticals Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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3 Undervalued Pharmaceuticals Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 3 undervalued stocks in the Pharmaceuticals industry for Saturday, February 07, 2026. Let’s take a closer look at their individual scores to see how they measure up against each other and the Pharmaceuticals industry median.

Company	Ticker	Price/Sales	Price/Earnings	EV/EBITDA	Shareholder Yield	Price/Book Value	Price/Free Cash Flow	Value Grade
Amphastar Pharmaceuticals, Inc.	AMPH	1.92	12.9	9.1	4.4%	1.75	12.2	B
CorMedix Inc.	CRMD	2.42	3.4	5.9	(29.1%)	1.61	7.0	B
Organon & Co.	OGN	0.34	4.3	6.8	0.0%	2.36	3.4	A

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Amphastar Pharmaceuticals, Inc.’s Value Grade

Value Grade:

Metric	Score	AMPH	Industry Median
Price/Sales	48	1.92	3.69
Price/Earnings	25	12.9	23.2
EV/EBITDA	30	9.1	9.1
Shareholder Yield	18	4.4%	(8.8%)
Price/Book Value	46	1.75	2.59
Price/Free Cash Flow	29	12.2	13.8

Amphastar Pharmaceuticals, Inc., a bio-pharmaceutical company, develops, manufactures, markets, and sells generic and proprietary injectable, inhalation, and intranasal products in the United States, China, and France. It offers BAQSIMI, a nasal spray for the treatment of severe hypoglycemia; Primatene Mist, an over-the-counter epinephrine inhalation product for the temporary relief of mild symptoms of intermittent asthma; Enoxaparin to prevent and treat deep vein thrombosis; REXTOVY and Naloxone for opioid overdose; Glucagon for injection emergency kit; and Cortrosyn, for use as a diagnostic agent in the screening of patients with adrenocortical insufficiency. The company also provides Amphadase, a bovine-sourced hyaluronidase injection; Epinephrine injection for allergic reactions; Lidocaine jelly, an anesthetic product for urological procedures; Lidocaine topical solution for various procedures; Phytonadione injection, a vitamin K1 injection for newborn babies; emergency syringe products; morphine injection for use with patient-controlled analgesia pumps; and Lorazepam injection for surgery and medical procedures. In addition, it offers Neostigmine methylsulfate injection to treat myasthenia gravis and to reverse the effects of muscle relaxants; Isoproterenol hydrochloride injection for mild or transient episodes of heart block; Ganirelix Acetate injection for the inhibition of premature luteinizing hormone surges; Vasopressin to increase blood pressure; and Regadenoson, a stress agent for radionuclide myocardial perfusion imaging, as well as Albuterol Sulfate inhalation aerosol. Further, the company distributes recombinant human insulin APIs and porcine insulin API. Additionally, it develops generic product candidates, such as injectable, inhalation, and analytical technologies; biosimial product candidates; and intranasal epinephrine for the treatment of allergic reactions. The company was founded in 1996 and is headquartered in Rancho Cucamonga, California.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Amphastar Pharmaceuticals, Inc. has a Value Score of 79, which is considered to be undervalued.

When you look at Amphastar Pharmaceuticals, Inc.’s price-to-sales ratio at 1.92 compared to the industry median at 3.69, this company has a lower price relative to revenue compared to its peers. This could make Amphastar Pharmaceuticals, Inc.’s stock more attractive for value investors.

Amphastar Pharmaceuticals, Inc.’s price-earnings ratio is 12.90 compared to the industry median at 23.20. This means it has a lower share price relative to earnings compared to its peers. This could make Amphastar Pharmaceuticals, Inc. more attractive for value investors.

Now, let’s assess Amphastar Pharmaceuticals, Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 9.1, when compared to the industry median of 9.1, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Amphastar Pharmaceuticals, Inc.’s shareholder yield is higher than its industry median ratio of (8.80%). Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Amphastar Pharmaceuticals, Inc.’s price-to-book ratio is lower than its industry median ratio of 2.59. This could make Amphastar Pharmaceuticals, Inc. more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Amphastar Pharmaceuticals, Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Amphastar Pharmaceuticals, Inc.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 13.80. This could make Amphastar Pharmaceuticals, Inc. more attractive because the lower P/FCF ratio indicates that Amphastar Pharmaceuticals, Inc. is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

CorMedix Inc.’s Value Grade

Value Grade:

Metric	Score	CRMD	Industry Median
Price/Sales	54	2.42	3.69
Price/Earnings	3	3.4	23.2
EV/EBITDA	14	5.9	9.1
Shareholder Yield	86	(29.1%)	(8.8%)
Price/Book Value	43	1.61	2.59
Price/Free Cash Flow	15	7.0	13.8

CorMedix Inc., a biopharmaceutical company, focuses on developing and commercializing therapeutic products for life-threatening diseases and conditions in the United States. Its lead product candidate is DefenCath, an antimicrobial catheter lock solution to reduce the incidence of catheter-related bloodstream infections in adult patients with kidney failure. The company was formerly known as Picton Holding Company, Inc. and changed its name to CorMedix, Inc. in January 2007. CorMedix Inc. was incorporated in 2006 and is based in Berkeley Heights, New Jersey.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

CorMedix Inc. has a Value Score of 73, which is considered to be undervalued.

CorMedix Inc.’s price-earnings ratio is 3.4 compared to the industry median at 23.2. This means that it has a lower price relative to its earnings compared to its peers. This makes CorMedix Inc. more attractive for value investors.

CorMedix Inc.’s price-to-book ratio is higher than its peers. This could make CorMedix Inc. less attractive for value investors when compared to the industry median at 2.59.

You can read more about CorMedix Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Organon & Co.’s Value Grade

Value Grade:

Metric	Score	OGN	Industry Median
Price/Sales	14	0.34	3.69
Price/Earnings	4	4.3	23.2
EV/EBITDA	17	6.8	9.1
Shareholder Yield	48	0.0%	(8.8%)
Price/Book Value	56	2.36	2.59
Price/Free Cash Flow	6	3.4	13.8

Organon & Co. develops and delivers health solutions through prescription therapies and medical devices in the United States, Europe, Canada, Japan, rest of the Asia Pacific, Latin America, the Middle East, Russia, Africa, and internationally. The company's women’s health portfolio comprises contraception and fertility brands, such as Nexplanon, a long-acting reversible contraceptive; NuvaRing, a monthly vaginal contraceptive ring; Cerazette, Marvelon, and Mercilon, which are daily pills used to prevent pregnancy; Follistim AQ, which is used to promote the development of multiple ovarian follicles in medically assisted reproduction procedures; Elonva, a follicle stimulant; Ganirelix acetate injection, an injectable antagonist; Jada for abnormal postpartum uterine bleeding or hemorrhage; and Xaciato for bacterial vaginosis. Its biosimilars portfolio consists of immunology products, such as Brenzys, Renflexis, and Hadlima; and two oncology products, including Ontruzant and Aybintio. The company also offers cholesterol-modifying medicines under the Zetia, Ezetrol, Vytorin, Inegy, Atozet, Rosuzet, and Zocor brands; Cozaar and Hyzaar for hypertension; respiratory products used to control and prevent asthma-induced symptoms under the Singulair, Dulera, Zenhale, and Asmanex brands, as well as seasonal allergic rhinitis under the Nasonex, Clarinex, and Aerius brands. In addition, it provides dermatology products under the Vtama, Diprosone, and Elocon brand; bone health products under the Fosamax brand; and non-opioid pain management products under the Arcoxia, Diprospan, and Celestone brands, as well as Proscar for symptomatic benign prostatic hyperplasia; and Propecia for male pattern hair loss. The company sells its products to drug wholesalers and retailers, hospitals, clinics, government agencies, health maintenance organizations, pharmacy benefit managers, and other institutions. Organon & Co. was founded in 1923 and is headquartered in Jersey City, New Jersey.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Organon & Co. has a Value Score of 92, which is considered to be undervalued.

Organon & Co.’s price-earnings ratio is 4.3 compared to the industry median at 23.2. This means that it has a lower price relative to its earnings compared to its peers. This makes Organon & Co. more attractive for value investors.

Organon & Co.’s price-to-book ratio is higher than its peers. This could make Organon & Co. less attractive for value investors when compared to the industry median at 2.59.

You can read more about Organon & Co.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Pharmaceuticals Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Pharmaceuticals stocks as well as other industrys.

Choosing Which of the 3 Best Pharmaceuticals Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

Amphastar Pharmaceuticals, Inc. stock has a Value Grade of B.
CorMedix Inc. stock has a Value Grade of B.
Organon & Co. stock has a Value Grade of A.

Now that you have a bit more background about each of the 3 undervalued stocks in the Pharmaceuticals industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Pharmaceuticals Stocks

Want to learn more about Pharmaceuticals stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.