Is ADC Therapeutics SA overvalued or undervalued?

As of 3 August 2021, the valuation grade for ADC Therapeutics SA moved from does not qualify to risky. The company is currently overvalued based on its financial metrics. Key ratios include a Price to Book Value of -1.62, an EV to EBIT of -5.11, and an EV to EBITDA of -5.24, all indicating significant financial distress. In comparison to peers, ADC Therapeutics has a less favorable EV to EBITDA ratio than G1 Therapeutics, Inc. at -9.6487 and Alpha Teknova, Inc. at -14.9899, which further underscores its challenging position.
Despite a strong year-to-date stock return of 70.35% compared to the S&P 500's 12.22%, the long-term performance is concerning, with a 5-year return of -92.55% versus the S&P 500's 96.61%. This stark contrast suggests that while there may be short-term gains, the overall valuation and financial health of ADC Therapeutics remain precarious.