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 a significant deterioration in its financial standing. The company is currently overvalued, as evidenced by its Price to Book Value of 8.24 and an EV to Capital Employed ratio of 120.55, which suggests that the market is pricing the company at a premium despite its poor financial performance. Additionally, the negative ROCE of -1237.25% and ROE of -68.85% further highlight the challenges the company faces.
In comparison to its peers, Regulus Therapeutics, Inc. has a less favorable EV to EBITDA ratio of -9.81, while BeyondSpring, Inc. and Aligos Therapeutics, Inc. have ratios of -7.9578 and 0.6671, respectively, indicating that Regulus is underperforming relative to these competitors. Despite its recent strong returns, with a year-to-date stock return of 416.46% compared to the S&P 500's 12.22%, the valuation metrics suggest that the stock is not justified at its current price level.