Is Amneal Pharmaceuticals, Inc. overvalued or undervalued?

As of 1 March 2024, Amneal Pharmaceuticals, Inc. has moved from a fair to a risky valuation grade. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 58, significantly higher than the industry average, while the price to book value is notably negative at -17.93, indicating potential issues with asset valuation. Additionally, the EV to EBITDA ratio is 7.91, which, while not excessively high, still reflects a premium compared to peers.
In comparison to specific peers, Amneal's P/E ratio of 60.55 is substantially higher than NewAmsterdam Pharma Co. NV, which has a P/E of -12.40, and Ardelyx, Inc. at -15.85. The attractive Keros Therapeutics, Inc. has a much higher P/E of 129.79, but also operates in a different valuation context. Notably, while Amneal has shown a 19.02% return over the past year, this is still less than the S&P 500's 10.26% return, suggesting that despite recent gains, the stock may not be justified at its current price level.