Is Arcutis Biotherapeutics, Inc. overvalued or undervalued?

As of 28 February 2023, the valuation grade for Arcutis Biotherapeutics, Inc. has moved from does not qualify to risky. The company is currently overvalued based on its financial metrics. Key ratios include a Price to Book Value of 12.02, an EV to Sales ratio of 7.63, and a ROCE of -231.44%. Compared to peers, Arcutis has a significantly higher EV to EBITDA ratio of -14.01, while ARS Pharmaceuticals, Inc. has an EV to EBITDA of -13.96, and Arbutus Biopharma Corp. shows -17.47, indicating that Arcutis is less favorable in terms of valuation.
In terms of recent performance, Arcutis has outperformed the S&P 500 with a year-to-date return of 27.14% compared to the index's 12.22%. However, the long-term outlook remains concerning, as evidenced by a 5-year return of -32.76%, which starkly contrasts with the S&P 500's 96.61% return over the same period.