Is Travere Therapeutics, Inc. overvalued or undervalued?

As of 3 November 2016, the valuation grade for Travere Therapeutics, Inc. changed from attractive to risky, indicating a shift in perception regarding its investment potential. The company appears to be overvalued, as evidenced by a Price to Book Value of 41.45 and negative EV to EBIT and EV to EBITDA ratios of -6.32 and -7.97, respectively. Additionally, the company's ROCE and ROE are significantly negative at -235.78% and -681.59%, highlighting severe operational inefficiencies.
In comparison to peers, Travere's valuation ratios are concerning; for instance, Amneal Pharmaceuticals, Inc. has a P/E ratio of 48.88, while NewAmsterdam Pharma Co. NV shows a P/E of -20.32, both indicating a more favorable valuation landscape. Furthermore, despite a strong 1Y stock return of 68.57% compared to the S&P 500's 17.14%, the long-term performance over 3Y and 5Y shows negative returns for Travere, suggesting that its recent gains may not be sustainable.