Is ADC Therapeutics SA overvalued or undervalued?

As of 3 August 2021, ADC Therapeutics SA's valuation grade has moved from does not qualify to risky, indicating a significant shift in its perceived investment quality. The company is currently considered overvalued, especially given its troubling financial ratios. The Price to Book Value stands at -1.62, while the EV to EBIT and EV to EBITDA ratios are at -5.11 and -5.24, respectively, which reflect negative operational performance.
In comparison to its peers, ADC Therapeutics SA's P/E ratio is -2.1005, while G1 Therapeutics, Inc. has a P/E of -8.4258 and Alpha Teknova, Inc. shows a P/E of -12.3662, highlighting that ADC is performing better than some of its counterparts but still remains in a risky category. Notably, the company's return over the past year is just 1.13%, significantly lagging behind the S&P 500's return of 10.26%, which further supports the conclusion that ADC Therapeutics is overvalued in the current market context.