Is Gossamer Bio, Inc. overvalued or undervalued?

As of 12 August 2024, Gossamer Bio, Inc. has moved from a grade of "does not qualify" to "risky." The company is currently considered overvalued based on its financial metrics. Key ratios include a Price to Book Value of -48.57, an EV to EBIT of -4.46, and an EV to EBITDA of -4.76, all indicating significant financial distress and negative performance.
In comparison to its peers, Gossamer Bio's valuation is starkly lower than Rigel Pharmaceuticals, Inc., which is rated "very attractive" with a P/E ratio of 9.21 and an EV to EBITDA of 7.02. Other peers such as Astria Therapeutics, Inc. and Acrivon Therapeutics, Inc. do not qualify, further highlighting Gossamer's poor standing in the industry. Despite a strong year-to-date return of 51.45%, the company's overall financial health suggests it is overvalued relative to its peers and market conditions.