Is Monte Rosa Therapeutics, Inc. overvalued or undervalued?

As of 7 August 2025, the valuation grade for Monte Rosa Therapeutics, Inc. moved from expensive to very attractive, indicating a significant improvement in its valuation outlook. The company appears undervalued, supported by a P/E ratio of 50, a PEG ratio of 0.48, and an EV to EBIT ratio of 6.60. In comparison, its peer MeiraGTx Holdings Plc has a P/E ratio of -3.8154, while 23andMe Holding Co. shows a similarly risky profile with a P/E of -0.7484, highlighting Monte Rosa's relatively stronger position in the market.
Despite a challenging year-to-date return of -0.14%, Monte Rosa has outperformed the S&P 500 in the short term, with a 1-week return of 41.72% compared to the index's 1.05%. This performance, along with its attractive valuation ratios, suggests that the stock may present a compelling investment opportunity.