Is SAGE Therapeutics, Inc. overvalued or undervalued?

As of 24 February 2022, the valuation grade for SAGE Therapeutics, Inc. has moved from attractive to risky, indicating a significant deterioration in its financial outlook. The company appears to be overvalued given its current financial metrics, particularly with a price-to-book ratio of 1.05 and a negative return on equity of -81.01%. Additionally, the EV to EBITDA ratio stands at -0.02, further highlighting the company's struggles.
When compared to its peer, Ironwood Pharmaceuticals, Inc., which has a P/E ratio of 13.85 and an EV to EBITDA of 6.53, SAGE's metrics suggest it is not performing favorably within its industry. The stock has underperformed against the S&P 500 over the past year, with a return of -11.07% compared to the index's 17.14%, reinforcing the notion that SAGE is currently overvalued.