Is Kiniksa Pharmaceuticals Ltd. overvalued or undervalued?

As of 23 July 2024, Kiniksa Pharmaceuticals Ltd. has moved from an expensive to a risky valuation grade. The company is currently considered overvalued given its financial metrics. The P/E ratio is not applicable due to losses, while the price to book value stands at 2.78, and the EV to sales ratio is 2.09. Notably, the ROCE is at -8.25% and ROE is -3.71%, indicating poor profitability.
In comparison to its peers, Kiniksa's valuation is significantly weaker; for instance, Travere Therapeutics, Inc. has an EV to EBITDA of -7.35, while PetIQ, Inc. is fairly valued with a P/E of 27.10. The company's recent stock performance has outpaced the S&P 500, with a year-to-date return of 45.20% compared to the S&P 500's 2.44%, but this does not mitigate the underlying valuation concerns.