Is Akebia Therapeutics, Inc. overvalued or undervalued?

As of 6 March 2017, the valuation grade for Akebia Therapeutics, Inc. moved from does not qualify to risky, indicating a more cautious outlook. The company appears to be overvalued given its high Price to Book Value of 42.42 and negative EV to EBIT of -51.46, alongside a troubling ROE of -184.16%. In comparison, peers such as Y-mAbs Therapeutics, Inc. have a lower EV to EBITDA of -12.49, and scPharmaceuticals, Inc. shows a more favorable EV to Sales ratio of -4.64, highlighting Akebia's relative weakness in valuation metrics. Despite a strong year-to-date return of 55.79% compared to the S&P 500's 12.22%, the overall valuation ratios suggest that Akebia is not positioned favorably within its industry. The combination of high valuation ratios and negative returns on equity supports the conclusion that Akebia Therapeutics, Inc. is overvalued.