Is Syndax Pharmaceuticals, Inc. overvalued or undervalued?

As of 1 August 2024, the valuation grade for Syndax Pharmaceuticals, Inc. has moved from does not qualify to risky, indicating a shift towards a more cautious outlook. The company appears to be overvalued given its high Price to Book Value of 4.58 and negative EV to EBIT and EV to EBITDA ratios of -2.38, which suggest significant operational challenges. Additionally, the Return on Capital Employed (ROCE) and Return on Equity (ROE) are alarmingly low at -730.60% and -154.01%, respectively, further underscoring the company's financial difficulties.
In comparison to its peers, Syndax's P/E ratio is not applicable due to its loss-making status, while Protagonist Therapeutics, Inc. is considered very expensive with a P/E of 67.1750, and Aurinia Pharmaceuticals, Inc. is fairly valued with a P/E of 20.8727. The stock has underperformed against the S&P 500 across multiple periods, with a 1-year return of -14.17% compared to the S&P 500's 17.14%, and a 3-year return of -33.23% versus 70.41% for the index, reinforcing the notion that Syndax is currently overvalued.