Is Dianthus Therapeutics, Inc. overvalued or undervalued?

As of 21 March 2024, the valuation grade for Dianthus Therapeutics, Inc. has moved from does not qualify to risky, indicating increased concern regarding its financial health. The company appears to be overvalued given its negative earnings and high valuation ratios, including a Price to Book Value of 1.84, an EV to Sales ratio of 52.61, and a ROE of -30.65%.
In comparison to its peers, Dianthus has a significantly lower EV to EBITDA ratio of -2.94 compared to Syndax Pharmaceuticals, Inc. at -3.8242 and Rayzebio, Inc. at -46.3970, highlighting its relative weakness. Additionally, while the stock has shown strong short-term performance with a 1-month return of 85.45% compared to the S&P 500's 2.33%, its long-term performance remains concerning, with a 5-year return of -68.53% against the S&P 500's 96.61%. This suggests that despite recent gains, the overall valuation remains precarious.