Is Regulus Therapeutics, Inc. overvalued or undervalued?

As of 11 March 2022, the valuation grade for Regulus Therapeutics, Inc. moved from risky to does not qualify, indicating significant concerns regarding its financial health. The company appears to be overvalued, particularly given its negative P/E ratio and alarming ROCE of -1237.25%. Additionally, the Price to Book Value stands at 8.24, which is quite high, especially in light of the company's losses.
In comparison with peers, Regulus Therapeutics has an EV to EBITDA of -9.81, while ARCA Biopharma, Inc. shows a slightly better EV to EBITDA at -0.8008. BeyondSpring, Inc. is also in a risky category with an EV to EBITDA of -15.2143, further emphasizing the challenging landscape for Regulus. Despite a remarkable year-to-date stock return of 415.19%, the underlying financial metrics suggest that the stock is not supported by fundamentals, reinforcing the conclusion that it is overvalued.