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 perception regarding its investment potential. 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 for companies in the same sector. Additionally, the EV to EBITDA ratio stands at 0.54, while the PEG ratio is notably low at 0.27, suggesting that the stock may not be justified at its current price level.
In comparison to its peers, Black Diamond Therapeutics, Inc. has a higher valuation than Harpoon Therapeutics, Inc., which has a P/E of -28.51, and Selecta Biosciences, Inc., with a P/E of -6.42, both of which are considered risky investments. The company's recent stock performance shows a year-to-date return of 87.38%, significantly outperforming the S&P 500's return of 13.30% in the same period, but this strong performance contrasts with its long-term returns, which have been negative over the past five years.