Is Relay Therapeutics, Inc. overvalued or undervalued?
As of November 2, 2023, Relay Therapeutics, Inc. is considered risky due to its negative financial metrics, including a Price to Book Value of 0.80, an EV to EBITDA ratio of 0.34, a troubling -47.81% Return on Equity, and a one-year return of -39.97%, significantly underperforming compared to the S&P 500's 17.14% return.
As of 2 November 2023, the valuation grade for Relay Therapeutics, Inc. has moved from does not qualify to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued given its negative performance metrics, including a Price to Book Value of 0.80 and an EV to EBITDA ratio of 0.34. Additionally, the Return on Equity (ROE) stands at a troubling -47.81%, reflecting significant losses relative to shareholder equity.In comparison to its peers, Relay Therapeutics, Inc. has a less favorable EV to EBITDA ratio than Deciphera Pharmaceuticals, Inc. at -9.7157 and Tango Therapeutics, Inc. at -3.7404, further underscoring its relative weakness in valuation. Despite a recent uptick in stock price, the company's one-year return of -39.97% starkly contrasts with the S&P 500's 17.14% return, reinforcing the notion that Relay Therapeutics is struggling significantly compared to broader market performance.
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