Is Rani Therapeutics Holdings, Inc. overvalued or undervalued?

As of 31 March 2025, the valuation grade for Rani Therapeutics Holdings, Inc. has moved from does not qualify to risky. The company is currently considered overvalued given its negative financial metrics and significant losses. Key ratios include a Price to Book Value of -10.54, an EV to EBIT of -0.80, and an EV to EBITDA of -0.82, all indicating severe financial distress.
In comparison to peers, Rani Therapeutics has a valuation of risky with a P/E ratio that is not applicable due to losses, while Avrobio, Inc. and Spero Therapeutics, Inc. are also classified as does not qualify and risky, respectively, with P/E ratios of -6.6206 and -2.3598. The company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -64.23% compared to the index's 2.44%, reinforcing the notion that Rani Therapeutics is overvalued in its current state.