Is Springworks Therapeutics, Inc. overvalued or undervalued?

As of 27 February 2024, the valuation grade for Springworks Therapeutics, Inc. has moved from does not qualify to risky. Based on the analysis, the company appears to be overvalued. The current price-to-book value stands at 8.45, while the EV to EBITDA ratio is -12.42, indicating significant losses. Additionally, the return on equity (ROE) is at -59.66%, which reflects poor profitability.
In comparison to peers, Springworks Therapeutics has a much lower EV to EBITDA ratio than PTC Therapeutics, Inc., which is at 2.5734, and Crinetics Pharmaceuticals, Inc. at -4.3389. The stark difference in these ratios suggests that Springworks is not performing well relative to its peers. Despite a strong year-to-date return of 30.00% compared to the S&P 500's 2.44%, the underlying financial metrics indicate that the stock is not justified at its current valuation.