Is Enanta Pharmaceuticals, Inc. overvalued or undervalued?

As of 25 November 2020, the valuation grade for Enanta Pharmaceuticals, Inc. has moved from fair to risky, indicating a significant downgrade in its financial outlook. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 1.71 and negative ratios such as EV to EBIT at -1.23 and EV to EBITDA at -1.27. These figures suggest that the company is struggling financially, as evidenced by a ROCE of -170.84% and a ROE of -103.08%.
In comparison to its peers, Enanta Pharmaceuticals is positioned unfavorably; for instance, Ocular Therapeutix, Inc. has a P/E ratio of -6.73, while Vanda Pharmaceuticals, Inc. shows a P/E of -5.98, both indicating greater losses than Enanta. The company's stock performance has also lagged behind, with a 1-year return of -40.32% compared to the S&P 500's 10.26% return, reinforcing the notion that it is currently overvalued in the market.