Is Applied Therapeutics, Inc. overvalued or undervalued?

As of 7 August 2024, the valuation grade for Applied Therapeutics, Inc. has moved from risky to does not qualify, indicating significant concerns regarding its financial health. The company is currently considered overvalued given its negative performance metrics, including a Price to Book Value of 1.43 and an EV to Sales ratio of 1.93, despite being a loss-making entity with a P/E ratio that cannot be calculated. The ROE stands at a staggering -287.00%, further emphasizing the company's struggles.
In comparison to its peers, Applied Therapeutics shows a stark contrast with Fusion Pharmaceuticals, Inc. and Zevra Therapeutics, both classified as risky, with P/E ratios of -17.58 and -5.05, respectively. The overall peer group reflects a challenging environment, with most companies also facing negative valuations. Additionally, the company's stock has significantly underperformed against the S&P 500, with a year-to-date decline of 64.96% compared to a modest gain of 2.44% for the index, reinforcing the notion that Applied Therapeutics is currently overvalued.