Is Schrödinger, Inc. overvalued or undervalued?

As of 1 May 2024, the valuation grade for Schrödinger, Inc. has moved from fair to risky, indicating a shift towards a more negative outlook. The company appears to be overvalued, given its significant negative metrics, including a Price to Book Value of 4.84 and an EV to Sales ratio of 5.69, alongside a troubling ROE of -47.30%. Comparatively, peers such as Sportradar Group AG have a P/E ratio of 74.43, highlighting the disparity in valuation.
The company's recent performance has been lackluster, with a 3-year return of -29.06% compared to the S&P 500's 70.41%, and a 5-year return of -64.94% against the S&P 500's 96.61%. These figures reinforce the notion that Schrödinger, Inc. is not only struggling in terms of valuation but also underperforming relative to broader market benchmarks.