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 appears to be overvalued given its negative valuation ratios, including a Price to Book Value of -1.84, an EV to EBIT of -3.40, and an EV to EBITDA of -3.41. In comparison to peers, Amneal Pharmaceuticals, Inc. has a P/E of 48.88, while NewAmsterdam Pharma Co. NV shows a P/E of -20.32, highlighting the significant disparity in valuation metrics within the industry.
Additionally, Phathom's recent stock performance shows a YTD return of 44.70%, which outperformed the S&P 500's return of 12.22% during the same period, but the one-year return of -38.90% starkly contrasts with the S&P 500's 17.14%. This suggests that while there may be short-term gains, the long-term outlook remains concerning, reinforcing the notion that the stock is overvalued.