Is Arcturus Therapeutics Holdings, Inc. overvalued or undervalued?

As of 7 March 2024, the valuation grade for Arcturus Therapeutics Holdings, Inc. has moved from fair to risky, indicating a more cautious outlook. The company appears to be overvalued given its current financial metrics, including a Price to Book Value of 1.48 and an EV to Sales ratio of 0.84, which, while not excessively high, do not compensate for the negative earnings and returns. Additionally, the company's ROE stands at -5.41%, reflecting ongoing losses.
In comparison to its peers, Keros Therapeutics, Inc. has a P/E ratio of 33.47, indicating a more favorable valuation, while REGENXBIO, Inc. is also considered risky with a P/E of -2.73. The stock has shown strong short-term performance, with a 1-week return of 8.76% compared to the S&P 500's 1.05%, but it has significantly underperformed over longer periods, such as a 5-year return of -58.16% versus the S&P 500's 96.61%. This disparity reinforces the notion that Arcturus Therapeutics is currently overvalued.