Is Black Diamond Therapeutics, Inc. overvalued or undervalued?

As of 17 October 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, given its P/E ratio of 29, which is significantly higher than the peer average of approximately 12.03, and an EV to EBITDA ratio of 0.54, which is also above the industry benchmark. Additionally, the PEG ratio stands at 0.27, suggesting that while growth may be present, the current valuation does not adequately reflect it compared to peers.
In comparison to its peers, Harpoon Therapeutics, Inc. has a P/E ratio of -28.51, while Selecta Biosciences, Inc. shows a P/E of -6.42, indicating that Black Diamond is trading at a premium despite its attractive valuation grade. The company's recent stock performance has been mixed; while it has outperformed the S&P 500 with a year-to-date return of 87.38% compared to the index's 13.30%, it has also seen a significant decline of 88.10% over the past five years, which raises concerns about its long-term sustainability.