Is Rapt Therapeutics, Inc. overvalued or undervalued?

As of 11 May 2023, the valuation grade for Rapt 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 negative performance metrics, including a P/E ratio that is not applicable due to losses, a Price to Book Value of 0.87, and an EV to EBITDA ratio of 0.19. Additionally, the Return on Equity (ROE) stands at a concerning -65.69%, highlighting ongoing financial struggles.
In comparison to its peers, Rapt Therapeutics, Inc. shows a stark contrast to Tarsus Pharmaceuticals, Inc., which has a P/E ratio of -16.08 and an EV to EBITDA of -12.26, and Viridian Therapeutics, Inc. with a P/E of -4.13 and an EV to EBITDA of -1.77. This suggests that Rapt's valuation does not align favorably within its industry context. Despite a remarkable recent stock performance, with a one-week return of 622.33% compared to a slight decline in the S&P 500, the underlying financial ratios indicate that the stock is not justified at its current price of 7.44.