Is Pliant Therapeutics, Inc. overvalued or undervalued?

As of 6 May 2024, the valuation grade for Pliant Therapeutics, Inc. has moved from risky to does not qualify, indicating a significant deterioration in its financial standing. The company is currently considered overvalued given its current price of $1.25, especially when compared to its peers. Key ratios include a Price to Book Value of 0.39 and an EV to EBITDA of 0.75, which suggest that the company's valuation metrics are not favorable compared to the industry.
In comparison to its peers, Pliant Therapeutics, Inc. has a negative P/E ratio of -0.3663, while Aurinia Pharmaceuticals, Inc. holds a fair valuation with a P/E of 18.6866. Additionally, Disc Medicine, Inc. is also classified as does not qualify but has a significantly worse EV to EBITDA ratio of -7.7346. The company's recent performance has been poor, with a year-to-date return of -90.51%, starkly contrasting with the S&P 500's return of 2.44% in the same period, further reinforcing the view that Pliant is overvalued.