Is Black Diamond Therapeutics, Inc. overvalued or undervalued?

As of 2 September 2025, the valuation grade for Black Diamond Therapeutics, Inc. has moved from very attractive to attractive, indicating a shift in perceived value. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 29, which is significantly higher than its peer Harpoon Therapeutics, Inc. with a P/E of -28.51, and a PEG ratio of 0.27, suggesting that growth expectations may not justify the current price. Additionally, the EV to EBITDA ratio stands at 0.54, which, while lower than the industry average, still raises concerns about the company's valuation relative to its earnings potential.
In comparison to its peers, Black Diamond Therapeutics, Inc. shows a stark contrast, with its attractive valuation against risky peers like Selecta Biosciences, Inc. and X4 Pharmaceuticals, both of which have negative P/E ratios. The stock has had a mixed performance, with a year-to-date return of 56.54%, significantly outperforming the S&P 500's 12.22% return, but a one-year return of -29.18% underperforms the index's 17.14%. This suggests that while there may be short-term gains, the long-term outlook remains uncertain, reinforcing the view that the stock is currently overvalued.