Is Insmed, Inc. overvalued or undervalued?

As of 22 February 2019, the valuation grade for Insmed, Inc. has moved from does not qualify to risky, indicating a significant change in its perceived risk profile. The company appears to be overvalued, with a Price to Book Value of 135.23 and negative EV to EBIT and EV to EBITDA ratios of -15.70 and -15.91, respectively. Additionally, the latest ROCE and ROE figures are alarming at -483.80% and -896.32%, respectively, suggesting severe inefficiencies in capital utilization and shareholder returns.
In comparison to its peers, Insmed, Inc. has a P/E ratio of -32.49, which is less favorable than Intra-Cellular Therapies, Inc. at -187.76 and Karuna Therapeutics, Inc. at -29.01. This places Insmed in a precarious position within the pharmaceuticals and biotechnology sector. Notably, Insmed has outperformed the S&P 500 over multiple periods, with a year-to-date return of 111.27% compared to the S&P 500's 12.22%, reinforcing the notion of overvaluation amidst its financial struggles.