Is Zentalis Pharmaceuticals, Inc. overvalued or undervalued?

As of 7 May 2024, Zentalis Pharmaceuticals, Inc. has moved from a grade of does not qualify to risky, indicating increased concerns regarding its valuation. The company appears to be overvalued, especially given its significant losses and poor performance metrics. Key ratios include a Price to Book Value of 0.37, an EV to EBIT of 1.12, and an EV to EBITDA of 1.13, which suggest that the company's valuation does not align well with its financial performance.
In comparison to peers, Zentalis Pharmaceuticals has a valuation of -0.7834, while Prothena Corp. Plc has a valuation of -1.6907, indicating that Zentalis is relatively better positioned but still in a risky category. The company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -50.83% compared to the index's 12.22%, reinforcing the notion that it is overvalued in its current state.