PRME PE Ratio & Valuation,Is PRME Overvalued

PRME Relative Valuation

PRME's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, PRME is overvalued; if below, it's undervalued.

Historical Valuation

Prime Medicine Inc (PRME) is now in the Overvalued zone, suggesting that its current forward PS ratio of 35.31 is considered Overvalued compared with the five-year average of -4.91. The fair price of Prime Medicine Inc (PRME) is between -10.63 to -8.59 according to relative valuation methord. Compared to the current price of 4.10 USD , Prime Medicine Inc is Overvalued By -147.7%.

Relative Value

Fair Zone

-10.63--8.59

Current Price：4.10

-147.7%

Overvalued

-4.21

-4.01

EV/EBITDA

Prime Medicine Inc. (PRME) has a current EV/EBITDA of -4.01. The 5-year average EV/EBITDA is -4.07. The thresholds are as follows: Strongly Undervalued below -10.72, Undervalued between -10.72 and -7.40, Fairly Valued between -0.75 and -7.40, Overvalued between -0.75 and 2.58, and Strongly Overvalued above 2.58. The current Forward EV/EBITDA of -4.01 falls within the Historic Trend Line -Fairly Valued range.

-3.68

EV/EBIT

Prime Medicine Inc. (PRME) has a current EV/EBIT of -3.68. The 5-year average EV/EBIT is -4.12. The thresholds are as follows: Strongly Undervalued below -10.72, Undervalued between -10.72 and -7.42, Fairly Valued between -0.83 and -7.42, Overvalued between -0.83 and 2.47, and Strongly Overvalued above 2.47. The current Forward EV/EBIT of -3.68 falls within the Historic Trend Line -Fairly Valued range.

35.31

Prime Medicine Inc. (PRME) has a current PS of 35.31. The 5-year average PS is 137.25. The thresholds are as follows: Strongly Undervalued below -281.61, Undervalued between -281.61 and -72.18, Fairly Valued between 346.68 and -72.18, Overvalued between 346.68 and 556.11, and Strongly Overvalued above 556.11. The current Forward PS of 35.31 falls within the Historic Trend Line -Fairly Valued range.

-4.91

P/OCF

Prime Medicine Inc. (PRME) has a current P/OCF of -4.91. The 5-year average P/OCF is -5.69. The thresholds are as follows: Strongly Undervalued below -12.77, Undervalued between -12.77 and -9.23, Fairly Valued between -2.15 and -9.23, Overvalued between -2.15 and 1.40, and Strongly Overvalued above 1.40. The current Forward P/OCF of -4.91 falls within the Historic Trend Line -Fairly Valued range.

-4.90

P/FCF

Prime Medicine Inc. (PRME) has a current P/FCF of -4.90. The 5-year average P/FCF is -4.86. The thresholds are as follows: Strongly Undervalued below -10.47, Undervalued between -10.47 and -7.66, Fairly Valued between -2.05 and -7.66, Overvalued between -2.05 and 0.75, and Strongly Overvalued above 0.75. The current Forward P/FCF of -4.90 falls within the Historic Trend Line -Fairly Valued range.

Prime Medicine Inc (PRME) has a current Price-to-Book (P/B) ratio of 4.47. Compared to its 3-year average P/B ratio of 3.91 , the current P/B ratio is approximately 14.33% higher. Relative to its 5-year average P/B ratio of 3.62, the current P/B ratio is about 23.70% higher. Prime Medicine Inc (PRME) has a Forward Free Cash Flow (FCF) yield of approximately -15.86%. Compared to its 3-year average FCF yield of -28.17%, the current FCF yield is approximately -43.72% lower. Relative to its 5-year average FCF yield of -27.15% , the current FCF yield is about -41.59% lower.

4.47

P/B

Median3y

3.91

Median5y

3.62

-15.86

FCF Yield

Median3y

-28.17

Median5y

-27.15

Competitors Valuation Multiple

The average P/S ratio for PRME's competitors is 25.87, providing a benchmark for relative valuation. Prime Medicine Inc Corp (PRME) exhibits a P/S ratio of 35.31, which is 36.49% above the industry average. Given its robust revenue growth of 486.12%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of PRME increased by 40.41% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 209.00K to 1.23M.

The secondary factor is the Margin Expansion, contributed -83.57%to the performance.

Overall, the performance of PRME in the past 1 year is driven by Revenue Growth. Which is more sustainable.

486.12%

209.00K → 1.23M

Revenue Growth

-83.57%

-25.13K → -4.13K

Margin Expansion

-362.14%

1.09 → -2.85

P/E Change

40.41%

2.92 → 4.10

Mkt Cap Growth

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Frequently Asked Questions

Is Prime Medicine Inc (PRME) currently overvalued or undervalued?

What is Prime Medicine Inc (PRME) fair value?

PRME's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Prime Medicine Inc (PRME) is between -10.63 to -8.59 according to relative valuation methord.

How does PRME's valuation metrics compare to the industry average?

What is the current P/B ratio for Prime Medicine Inc (PRME) as of Dec 15 2025?

As of Dec 15 2025, Prime Medicine Inc (PRME) has a P/B ratio of 4.47. This indicates that the market values PRME at 4.47 times its book value.

What is the current FCF Yield for Prime Medicine Inc (PRME) as of Dec 15 2025?

As of Dec 15 2025, Prime Medicine Inc (PRME) has a FCF Yield of -15.86%. This means that for every dollar of Prime Medicine Inc’s market capitalization, the company generates -15.86 cents in free cash flow.

What is the current Forward P/E ratio for Prime Medicine Inc (PRME) as of Dec 15 2025?

As of Dec 15 2025, Prime Medicine Inc (PRME) has a Forward P/E ratio of -4.21. This means the market is willing to pay $-4.21 for every dollar of Prime Medicine Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Prime Medicine Inc (PRME) as of Dec 15 2025?

As of Dec 15 2025, Prime Medicine Inc (PRME) has a Forward P/S ratio of 35.31. This means the market is valuing PRME at $35.31 for every dollar of expected revenue over the next 12 months.

PRME Valuation