Is Amylyx Pharmaceuticals, Inc. overvalued or undervalued?

As of 8 May 2025, the valuation grade for Amylyx Pharmaceuticals, Inc. has moved from risky to does not qualify, indicating a significant downgrade in its investment appeal. The company is currently overvalued given its financial metrics, particularly with a price-to-book value of 2.36 and a return on equity (ROE) of -79.34%. Additionally, the EV to EBITDA ratio stands at -1.60, reflecting substantial operational challenges.
In comparison to its peers, Amylyx Pharmaceuticals is underperforming significantly. For instance, Catalyst Pharmaceuticals, Inc. has a P/E ratio of 14.87 and an EV to EBITDA of 8.36, while Supernus Pharmaceuticals, Inc. shows a P/E of 28.13 and an EV to EBITDA of 8.72. These comparisons highlight that Amylyx is not only lagging behind its competitors but also carries a valuation that does not justify its current price level. Furthermore, despite a strong one-year stock return of 182.02%, the recent performance has been poor relative to the S&P 500, which suggests that the stock may not sustain its current valuation.