Is Arrowhead Pharmaceuticals, Inc. overvalued or undervalued?

As of 5 August 2020, Arrowhead Pharmaceuticals, Inc. has moved from an expensive to a risky valuation grade. The company is currently deemed overvalued given its negative financial metrics and performance relative to peers. Key ratios include a Price to Book Value of 3.40, an EV to EBITDA of -19.06, and a Return on Capital Employed (ROCE) of -54.16%.
In comparison to peers, Arrowhead's P/E ratio is not applicable due to its loss-making status, while Axsome Therapeutics, Inc. has a P/E of -20.23 and an EV to EBITDA of -21.14, indicating a similar risk profile. Krystal Biotech, Inc., on the other hand, is classified as expensive with a P/E of 25.47. The company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -17.50% compared to the index's 2.44%.