Is KalVista Pharmaceuticals, Inc. overvalued or undervalued?

As of 11 September 2025, the valuation grade for KalVista Pharmaceuticals, Inc. has moved from does not qualify to risky, indicating a heightened level of concern regarding its financial health. The company appears to be overvalued given its significant negative metrics, including a Price to Book Value of 4.92 and an ROE of -121.18%. Additionally, the EV to EBIT and EV to EBITDA ratios are both negative, at -3.10 and -3.12 respectively, which further underscores the company's financial struggles.
In comparison to its peers, KalVista's valuation ratios are concerning; for instance, Icosavax, Inc. has a P/E of -7.9922, while Nurix Therapeutics, Inc. shows a P/E of -3.5769, both indicating similar risk profiles. In contrast, SIGA Technologies, Inc. stands out with a more attractive P/E of 7.5458. Notably, while KalVista has shown a YTD return of 63.87%, it has underperformed against the S&P 500's return of 12.22%, and its 3-year return of -7.40% starkly contrasts with the S&P 500's 70.41%. This performance reinforces the view that the stock may be overvalued in its current state.