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 appears to be overvalued given its negative valuation ratios, including a Price to Book Value of -48.57, an EV to EBIT of -4.46, and an EV to EBITDA of -4.76. In comparison to peers, Rigel Pharmaceuticals, Inc. has a much more favorable P/E ratio of 7.49 and an EV to EBITDA of 6.40, highlighting the significant disparity in valuation.
Despite a strong year-to-date return of 240.48%, which outperformed the S&P 500's 12.22%, the long-term performance is concerning, with a 3-year return of -77.22% compared to the S&P 500's 70.41%. This indicates that while there may be short-term volatility, the overall valuation metrics suggest that Gossamer Bio, Inc. is not a sound investment at its current price.