Is Protagonist Therapeutics, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Protagonist Therapeutics, Inc. moved from expensive to very expensive, indicating a significant deterioration in its valuation appeal. The company is overvalued, as evidenced by its high P/E ratio of 60, a price-to-book value of 4.89, and an EV to EBITDA ratio of 94.50, all of which are substantially above industry norms. In comparison, Aurinia Pharmaceuticals, Inc. has a P/E ratio of 20.87 and an EV to EBITDA of 12.92, illustrating a stark contrast in valuation metrics.
Despite the overvaluation, Protagonist Therapeutics has demonstrated strong recent performance, with a year-to-date return of 60.98% compared to the S&P 500's 12.22%. This outperformance may attract investor interest, but the underlying valuation ratios suggest caution for potential investors.