Is Nektar Therapeutics overvalued or undervalued?

As of 9 August 2019, Nektar Therapeutics has moved from a very attractive to a risky valuation grade. The company is currently overvalued given its financial metrics, including a price-to-book value of 9.02 and a staggering return on equity (ROE) of -860.22%. Additionally, the EV to EBITDA and EV to EBIT ratios are both at -0.10, indicating significant operational challenges.
In comparison to peers, Nektar's valuation stands out unfavorably against Puma Biotechnology, which has a P/E ratio of 4.47 and an EV to EBITDA of 2.85, suggesting a more favorable investment outlook. Protalix Biotherapeutics also shows a strong P/E of 27.91 and an EV to EBITDA of 12.72, reinforcing the notion that Nektar is not only overvalued but also struggling significantly in the market. The company's stock has underperformed notably, with a year-to-date return of -31.61%, contrasting sharply with the S&P 500's positive return of 2.44% in the same period.