Is aTyr Pharma, Inc. overvalued or undervalued?

As of 14 March 2024, the valuation grade for aTyr Pharma, Inc. has moved from risky to does not qualify, indicating a significant deterioration in its financial standing. The company is currently considered overvalued given its negative financial metrics, including a P/E ratio of NA due to losses, a Price to Book Value of 6.38, and an EV to EBITDA of -6.14. Additionally, the ROE stands at a concerning -84.50%, reflecting the company's struggles to generate returns for shareholders.
In comparison with peers, aTyr Pharma's valuation metrics are notably weaker, with Chimerix, Inc. also categorized as does not qualify and showing a P/E of -8.6897, while DiaMedica Therapeutics, Inc. has a P/E of -5.6701. The overall peer comparison suggests that aTyr Pharma is not only underperforming against its immediate competitors but also lacks the financial stability to justify its current price. Despite a strong year-to-date return of 37.57%, the valuation metrics indicate that the stock is overvalued in the current market context.