Is Monte Rosa Therapeutics, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Monte Rosa Therapeutics, Inc. has moved from very attractive to fair. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 50, significantly higher than the industry average, while the PEG ratio is a more favorable 0.48, suggesting potential growth relative to its price. Additionally, the EV to EBITDA ratio is notably negative at -2.29, indicating potential concerns about profitability.
In comparison to its peers, Monte Rosa's P/E of 12.27 is more favorable than MeiraGTx Holdings Plc's risky P/E of -3.82 and 23andMe Holding Co.'s risky P/E of -0.75. However, the high P/E ratio relative to its peers and the negative EV to EBITDA suggest that the market may be overestimating its value. Over the past year, Monte Rosa has outperformed the S&P 500 with a return of 83.06% compared to the index's 14.08%, but this strong performance may not be sustainable given the current valuation metrics.