Is Adverum Biotechnologies, Inc. overvalued or undervalued?

As of 4 November 2024, the valuation grade for Adverum Biotechnologies, Inc. has moved from does not qualify to risky, indicating increased concerns regarding its financial stability. The company appears to be overvalued based on its current metrics, particularly given its significant losses reflected in a P/E ratio that is not applicable and a negative EV to Sales ratio of -16.73. Key ratios such as the Price to Book Value at 2.24 and an EV to EBITDA of 0.11 further underscore the challenges the company faces.
In comparison to its peers, Adverum's valuation ratios are less favorable; for instance, Zevra Therapeutics, Inc. has a P/E of -5.055, while Alimera Sciences, Inc. shows a P/E of -23.1138. Additionally, Adverum's ROE stands at a strikingly negative -505.49%, which raises red flags about its profitability. The company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -52.25% compared to the index's 2.44%, reinforcing the notion that the stock is overvalued in the current market environment.