Is Assembly Biosciences, Inc. overvalued or undervalued?

As of 28 March 2024, the valuation grade for Assembly Biosciences, Inc. has moved from does not qualify to risky, indicating an increased perception of risk associated with the stock. The company appears to be overvalued, given its high Price to Book Value of 4.57 and negative EV to EBIT and EV to EBITDA ratios of -0.75, which suggest that the market may be pricing in expectations that are not supported by current financial performance.
In comparison to its peers, Assembly Biosciences has a P/E ratio of -9.31, while Societal CDMO, Inc. shows a more negative P/E of -10.74, and Outlook Therapeutics, Inc. has a P/E of -0.58. The negative ROE of -147.12% further underscores the challenges the company faces in generating returns. Notably, while the stock has outperformed the S&P 500 on a year-to-date basis with a return of 41.13% compared to 12.22%, its longer-term performance reflects significant underperformance, particularly over the past five years, where it has declined by 89.36% versus the S&P 500's 96.61% gain.