Is Enanta Pharmaceuticals, Inc. overvalued or undervalued?

As of 25 November 2020, the valuation grade for Enanta Pharmaceuticals, Inc. moved from expensive to risky, indicating a shift in perception regarding its valuation. The company appears to be overvalued based on its financial metrics, particularly given its negative P/E ratio and poor returns on capital, with a Price to Book Value of 1.71, EV to Sales of 1.95, and a troubling ROCE of -170.84%.
In comparison to peers, Enanta's EV to EBITDA stands at -1.27, while Y-mAbs Therapeutics, Inc. has a significantly higher EV to EBITDA of -12.49, and scPharmaceuticals, Inc. at -4.64, highlighting that Enanta is underperforming relative to its industry. The stock's performance has been lackluster, with a 1Y return of -31.17% compared to the S&P 500's 17.14%, reinforcing the notion that the stock is overvalued in the current market context.