Is Sagimet Biosciences, Inc. overvalued or undervalued?

As of 14 November 2024, the valuation grade for Sagimet Biosciences, Inc. has moved from risky to does not qualify, indicating significant concerns regarding its financial health. The company is currently considered overvalued given its negative performance metrics, including a price-to-book ratio of 1.23 and a return on equity (ROE) of -41.09%. Additionally, the EV to EBITDA and EV to EBIT ratios are both at -0.40, reflecting a troubling financial situation.
In comparison to its peers, Sagimet's performance is starkly unfavorable. For instance, Fusion Pharmaceuticals, Inc. has a P/E ratio of -17.58, while Rigel Pharmaceuticals, Inc. stands out as very attractive with a P/E of 9.21. The recent stock performance of Sagimet, which has returned 142.32% over the past month, contrasts sharply with its valuation metrics, reinforcing the notion that it may be overvalued in the current market context.