Is Arrowhead Pharmaceuticals, Inc. overvalued or undervalued?

As of 5 August 2020, the valuation grade for Arrowhead Pharmaceuticals, Inc. moved from fair to risky, indicating a deteriorating outlook. The company appears to be overvalued given its current financial metrics, including a Price to Book Value of 3.40, an EV to EBIT of -15.66, and an EV to EBITDA of -19.06, which suggest significant losses relative to its enterprise value.
In comparison to its peers, Arrowhead's valuation ratios are notably weaker; for instance, BridgeBio Pharma, Inc. has an EV to EBITDA of -19.73, while CRISPR Therapeutics AG has a more favorable EV to EBITDA of -7.37. Additionally, Arrowhead's recent stock performance has outpaced the S&P 500 in the short term, with a 1-month return of 58.26% compared to the S&P 500's 2.33%, but its long-term performance remains concerning with a 5-year return of -26.89% versus the S&P 500's 96.61%.