Is Travere Therapeutics, Inc. overvalued or undervalued?

As of 3 November 2016, the valuation grade for Travere Therapeutics, Inc. moved from very attractive to risky, indicating a significant shift in perception. The company is currently overvalued, particularly given its troubling financial metrics. The price-to-book value stands at 41.45, while the EV to EBITDA ratio is at -7.97, and the return on equity (ROE) is a staggering -681.59%. These ratios suggest that the company is struggling to generate positive returns and is facing considerable financial challenges.
In comparison to its peers, Travere Therapeutics shows a stark contrast; for instance, Innoviva, Inc. has a P/E ratio of 15.38 and an EV to EBITDA of 9.15, while Collegium Pharmaceutical, Inc. has a P/E of 14.78 and an EV to EBITDA of 4.82, both indicating more favorable valuations. The recent stock performance of Travere, which has declined by 16.82% year-to-date compared to a 2.44% increase in the S&P 500, further reinforces the notion that the company is overvalued in the current market environment.