Is Crinetics Pharmaceuticals, Inc. overvalued or undervalued?

As of 7 August 2025, the valuation grade for Crinetics Pharmaceuticals, Inc. moved from does not qualify to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 2.47, an EV to EBITDA of -4.88, and a negative ROE of -26.18%.
In comparison to its peers, Crinetics shows a significantly lower EV to EBITDA ratio than PTC Therapeutics, Inc. at 3.1714 and Ultragenyx Pharmaceutical, Inc. at -7.2361, further highlighting its relative weakness in valuation. Additionally, while Crinetics has seen a 5.19% return over the past week, it has underperformed on a year-to-date basis with a -30.61% return compared to the S&P 500's 12.22%, reinforcing the notion that the stock may be overvalued in the current market environment.