Is Fulcrum Therapeutics, Inc. overvalued or undervalued?

As of 29 July 2025, the valuation grade for Fulcrum Therapeutics, Inc. moved from risky to does not qualify, indicating a significant deterioration in its investment appeal. The company appears overvalued, particularly when considering its P/E ratio of 252, which is substantially higher than typical industry benchmarks, and a PEG ratio of 2.48, suggesting that the stock is priced high relative to its expected growth. Additionally, the negative EV to EBIT and EV to EBITDA ratios of -16.05 and -18.80 further highlight the company's struggles in generating earnings relative to its enterprise value.
In comparison to its peers, KalVista Pharmaceuticals, Inc. has a P/E of -4.3845 and MacroGenics, Inc. has a P/E of -3.0562, both reflecting a more favorable valuation relative to Fulcrum. Despite a strong year-to-date return of 60.43% compared to the S&P 500's 12.22%, the long-term performance shows a decline of 14.71% over three years, indicating that the recent gains may not be sustainable. Overall, Fulcrum Therapeutics is currently overvalued based on the provided metrics.