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 P/E of approximately 12.03. Additionally, the EV to EBITDA ratio stands at 0.54, while the industry peers are showing much lower or negative values, further suggesting that the stock may not be justified at its current price.
In comparison to its peers, Black Diamond Therapeutics, Inc. has a PEG ratio of 0.27, which is favorable, but this is overshadowed by the high P/E ratio. Notable peers include Harpoon Therapeutics, Inc. with a P/E of -28.51 and Selecta Biosciences, Inc. with a P/E of -6.42, both indicating that the industry is facing significant challenges. While specific return data is not available, the absence of a strong performance relative to the S&P 500 reinforces the notion that the stock may be overvalued at its current levels.