Is Arvinas, Inc. overvalued or undervalued?

As of 6 August 2025, the valuation grade for Arvinas, Inc. has moved from attractive to risky, indicating a significant deterioration in its valuation outlook. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 0.83 and an EV to EBITDA ratio of 13.10, which are not favorable compared to its peers. Additionally, the ROCE stands at 12.11%, while the ROE is negative at -10.12%, further highlighting the company's struggles.
In comparison to its peers, Arvinas, Inc. has a P/E ratio of -10.12, while Vir Biotechnology, Inc. and Xencor, Inc. have P/E ratios of -1.4151 and -3.2519, respectively, indicating that Arvinas is underperforming relative to its industry. The stock has also significantly lagged behind the S&P 500, with a year-to-date return of -59.73% compared to the index's 12.22%. This stark contrast reinforces the notion that Arvinas, Inc. is currently overvalued.