Is Kiniksa Pharmaceuticals Ltd. overvalued or undervalued?

As of 29 July 2025, the valuation grade for Kiniksa Pharmaceuticals Ltd. moved from risky to attractive, indicating a more favorable outlook. The company appears to be undervalued, particularly when considering its Price to Book Value of 2.78, EV to Sales ratio of 2.09, and a notably high P/E ratio of 294.42, which reflects its loss-making status but suggests potential for future growth.
In comparison with peers, Kiniksa's valuation metrics stand out, especially against Amneal Pharmaceuticals, which has a P/E of 48.88, and NewAmsterdam Pharma, which shows a negative P/E. Despite recent stock performance showing a decline of 2.95% over the past week compared to a 1.05% increase in the S&P 500, Kiniksa has demonstrated strong returns year-to-date at 81.60%, significantly outperforming the S&P 500's 12.22%. This combination of metrics and performance suggests that Kiniksa Pharmaceuticals Ltd. may be a compelling investment opportunity.