Is Praxis Precision Medicines, Inc. overvalued or undervalued?

As of 9 August 2023, Praxis Precision Medicines, Inc. has moved from a valuation grade of "does not qualify" to "risky." The company is currently considered overvalued based on its financial metrics. Key ratios include a Price to Book Value of 2.07, an EV to EBITDA of -2.50, and a ROE of -48.40%. In comparison to its peers, Praxis shows a P/E ratio of -4.16, while Ocular Therapeutix, Inc. has a P/E of -6.73 and Akebia Therapeutics, Inc. has a significantly lower P/E of -20.31. The company's recent performance has been underwhelming, with a year-to-date return of -45.91%, contrasting sharply with the S&P 500's gain of 2.44% during the same period. This further reinforces the assessment that Praxis Precision Medicines is overvalued in its current state.