Is Roivant Sciences Ltd. overvalued or undervalued?
As of February 10, 2025, Roivant Sciences Ltd. is considered overvalued with negative financial metrics despite strong stock performance, indicating a risky valuation grade compared to peers.
As of 10 February 2025, Roivant Sciences Ltd. has moved from a fair to a risky valuation grade. The company appears to be overvalued given its negative financial metrics, including a Price to Book Value of 1.63, an EV to EBIT of -2.43, and an ROE of -17.21%. In comparison to peers, Neurocrine Biosciences, Inc. has a P/E ratio of 37.08, while Viatris, Inc. shows a P/E of 44.86, both indicating a stark contrast in valuation metrics.Despite the unfavorable valuation, Roivant Sciences has demonstrated strong stock performance, with a 1Y return of 25.75% compared to the S&P 500's 17.14%, and an impressive 5Y return of 589.04% against the S&P 500's 96.61%. This performance may suggest some investor optimism, but the underlying financial ratios indicate that the stock is not justified at its current price level.
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