Is ATAI Life Sciences NV overvalued or undervalued?

As of 14 May 2025, the valuation grade for ATAI Life Sciences NV has moved from does not qualify to risky. The company appears to be overvalued given its significant negative financial metrics, including a P/E ratio that is not applicable due to losses, a Price to Book Value of 3.18, and an EV to Sales ratio of 215.20. Additionally, the Return on Capital Employed (ROCE) stands at a staggering -130.41%, and the Return on Equity (ROE) is at -63.76%, indicating severe inefficiencies in generating profits from its capital.
In comparison to its peers, ATAI Life Sciences NV's EV to EBITDA ratio of -4.41 is less favorable than Akebia Therapeutics, Inc. at -20.31 and Praxis Precision Medicines, Inc. at -4.16. The overall financial health and performance metrics suggest that ATAI is not only underperforming relative to its peers but also carries a high risk profile. Despite a positive year-to-date return of 51.88% compared to the S&P 500's 2.44%, the underlying financials indicate that the stock may be overvalued at its current price of 2.02.