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 a deterioration in its investment appeal. The company appears to be overvalued, given its high Price to Book Value of 2.24, an extremely low EV to EBIT of 0.11, and a negative EV to Sales ratio of -16.73. Compared to peers, Adverum's EV to EBITDA ratio of 0.11 is significantly lower than XOMA Corp.'s -22.9484 and Alimera Sciences, Inc.'s 27.2619, highlighting its relative underperformance.
In terms of stock performance, Adverum has faced substantial declines, with a year-to-date return of -36.83%, compared to a positive 12.22% for the S&P 500, and a staggering -97.62% over the past five years against a 96.61% gain for the index. This stark contrast reinforces the notion that Adverum is currently overvalued in the market.