Is Tarsus Pharmaceuticals, Inc. overvalued or undervalued?

As of 11 May 2021, Tarsus Pharmaceuticals, Inc. has moved from a grade of does not qualify to risky, indicating a significant shift in its valuation outlook. The company is currently assessed as overvalued, particularly given its troubling financial ratios, including a Price to Book Value of 5.39 and an EV to Sales ratio of 6.46, which are considerably high for a company in a loss-making position. Additionally, the ROE stands at -30.08%, reflecting poor profitability.
In comparison to its peers, Tarsus Pharmaceuticals shows a P/E ratio of -16.08, while Viridian Therapeutics, Inc. has a P/E of -4.13, and Travere Therapeutics, Inc. has a P/E of -5.59, highlighting that Tarsus is underperforming relative to its industry. The company's recent stock performance has also been lackluster, with a year-to-date return of -26.68%, contrasting sharply with the S&P 500's positive return of 2.44% in the same period. This further supports the conclusion that Tarsus Pharmaceuticals is overvalued in the current market environment.