Is Acumen Pharmaceuticals, Inc. overvalued or undervalued?

As of 16 August 2021, Acumen Pharmaceuticals, Inc. has moved from a grade of risky to does not qualify, indicating a significant downgrade in its valuation outlook. The company is currently considered overvalued given its financial metrics, including a Price to Book Value of 0.47 and an EV to EBITDA ratio of 0.37, which suggest that the market is not accurately reflecting its financial health. The negative Return on Equity (ROE) of -75.93% further underscores the challenges the company faces.
In comparison to its peers, Acumen's valuation metrics are starkly unfavorable. For instance, Soleno Therapeutics, Inc. has a P/E ratio of -20.32, while Phibro Animal Health Corp. boasts a much more favorable P/E ratio of 21.68, highlighting the disparity in market perception. Additionally, Acumen's stock has underperformed significantly over the past year, with a return of -46.75% compared to the S&P 500's gain of 10.26%, reinforcing the notion that the stock is overvalued in the current market context.