Is Monte Rosa Therapeutics, Inc. overvalued or undervalued?

As of 8 May 2025, the valuation grade for Monte Rosa Therapeutics, Inc. has moved from risky to expensive, indicating a shift in perception regarding its valuation. The company is currently deemed overvalued. Key ratios include a P/E ratio of 50, an EV to EBIT of 6.60, and a PEG ratio of 0.48, which suggests that despite a high P/E, growth expectations may not justify the price.
In comparison to its peers, Monte Rosa's P/E ratio of 50 is significantly higher than Xeris Biopharma Holdings, Inc. at -15.77 and Nuvation Bio, Inc. at -3.21, both of which are categorized as risky. This stark contrast highlights the premium investors are paying for Monte Rosa relative to its struggling peers. Additionally, the company's recent stock performance shows a year-to-date decline of 33.14%, while the S&P 500 has gained 2.44%, further reinforcing the notion that the stock may not be a sound investment at its current valuation.