Is Phathom Pharmaceuticals, Inc. overvalued or undervalued?

As of 9 May 2024, the valuation grade for Phathom Pharmaceuticals, Inc. has moved from does not qualify to risky. The company is currently deemed overvalued based on its financial metrics. Key ratios include a price-to-book value of -1.84, an EV to EBIT of -3.40, and an EV to EBITDA of -3.41, all indicating significant financial distress.
In comparison to its peers, Phathom's valuation appears unfavorable. For instance, Viridian Therapeutics, Inc. has a P/E ratio of -4.1277 and an EV to EBITDA of -1.7725, while Travere Therapeutics, Inc. shows a P/E of -5.5910 and an EV to EBITDA of -7.3539. Despite a recent surge in stock price over the past month, the overall performance against the S&P 500 reveals a concerning trend, particularly with a 1-year return of -14.53% compared to the index's 10.26%.