Is Roivant Sciences Ltd. overvalued or undervalued?

As of 10 February 2025, the valuation grade for Roivant Sciences Ltd. has moved from attractive to risky, indicating a significant shift in its perceived value. The company is currently considered overvalued given its financial metrics, with a price to book value of 1.63 and negative returns on capital employed and equity, with ROE at -17.21%. The EV to EBITDA ratio stands at -2.45, further underscoring the challenges the company faces.
In comparison to its peers, Roivant's P/E ratio is notably negative at -9.36, while Alnylam Pharmaceuticals also shows a risky valuation with a P/E of -827.79. In contrast, Royalty Pharma Plc is classified as attractive with a P/E of 10.83, highlighting the disparity in valuations within the sector. Despite recent stock performance showing a 3.79% return over the past week, the overall outlook suggests that Roivant Sciences Ltd. is overvalued in the current market environment.