Is Arcutis Biotherapeutics, Inc. overvalued or undervalued?

As of 28 February 2023, the valuation grade for Arcutis Biotherapeutics, Inc. moved from does not qualify to risky. The company is currently considered overvalued based on its financial metrics. Key ratios include a price-to-book value of 12.02, an EV to EBITDA of -14.01, and a return on capital employed (ROCE) of -231.44%.
In comparison with peers, Arcutis has a P/E ratio that is not applicable due to its loss-making status, while ARS Pharmaceuticals, Inc. has a P/E of -92.41, and Nurix Therapeutics, Inc. shows a P/E of -4.17. The significant negative ratios and the company's poor performance relative to peers suggest that it is overvalued in the current market context. Notably, while Arcutis has outperformed the S&P 500 over the past year with a return of 69.61%, the underlying financials indicate a concerning valuation outlook.