Is XBiotech, Inc. overvalued or undervalued?

As of 9 November 2023, the valuation grade for XBiotech, Inc. has moved from risky to does not qualify, indicating a significant deterioration in its financial standing. The company is currently considered overvalued. Key ratios reveal a Price to Book Value of 0.51, an EV to EBIT of 1.49, and an EV to EBITDA of 1.55, which suggest that the company is not generating sufficient returns relative to its enterprise value.
In comparison to its peers, XBiotech, Inc. exhibits a P/E ratio of -2.0190, while Trevi Therapeutics, Inc. has a P/E of -15.3998, and Altimmune, Inc. stands at -6.1927. These figures highlight the challenging environment in which XBiotech operates, as it struggles with negative returns on equity of -22.56%. Additionally, the company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -34.43% compared to the index's 2.44%.