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. Key ratios include a P/E ratio of 50, a Price to Book Value of 1.12, and an EV to EBIT of 6.60, which suggest that the stock may not be justified at its current price level.
In comparison to its peers, Monte Rosa's P/E ratio of 12.27 is significantly higher than MeiraGTx Holdings Plc, which has a P/E of -3.82, and 23andMe Holding Co. with a P/E of -0.75, indicating a potential overvaluation relative to these companies. Additionally, while Monte Rosa has shown impressive returns, with a 1Y return of 83.06% compared to the S&P 500's 14.08%, the substantial difference in returns may not be sustainable given its current valuation metrics.