Is SAGE Therapeutics, Inc. overvalued or undervalued?

As of 24 February 2022, SAGE Therapeutics, Inc. has moved from a very attractive to a risky valuation grade. The company is currently considered overvalued given its negative financial metrics, including a P/E ratio that is not applicable due to losses, an EV to EBITDA ratio of -0.02, and a ROE of -81.01%. The price to book value stands at 1.05, indicating that the market is valuing the company higher than its book value despite its financial struggles.
In comparison to peers, Catalyst Pharmaceuticals, Inc. has a P/E ratio of 14.87 and is rated very attractive, while Supernus Pharmaceuticals, Inc. is deemed expensive with a P/E of 28.13. SAGE's performance has been mixed, with a year-to-date return of 71.27%, significantly outperforming the S&P 500's 2.44% during the same period. However, the long-term returns paint a concerning picture, with a 5-year decline of 78.45%. Overall, SAGE Therapeutics appears to be overvalued in the current market context.