Is Ardelyx, Inc. overvalued or undervalued?

As of 6 November 2019, the valuation grade for Ardelyx, Inc. moved from does not qualify to risky, indicating a shift in perception regarding its financial health. Based on the available metrics, Ardelyx appears to be overvalued, particularly given its negative profitability indicators. The company has a Price to Book Value of 6.04, an EV to EBIT of -20.67, and an EV to EBITDA of -21.91, all of which suggest that the stock is trading at a premium despite its losses.
In comparison to peers, Ardelyx's valuation ratios are concerning; for instance, Ligand Pharmaceuticals, Inc. has a P/E of -67.27 and an EV to EBITDA of 132.07, while MannKind Corp. shows a P/E of 38.35 and an EV to EBITDA of 18.98, indicating that Ardelyx is not competitively positioned within its industry. Furthermore, while Ardelyx has shown a strong 3-year return of 390.08%, this is contrasted by a recent 1-week decline of -3.89% against the S&P 500's 1.05% gain, highlighting volatility and potential overvaluation concerns.