Is Blueprint Medicines Corp. overvalued or undervalued?

As of 28 October 2021, the valuation grade for Blueprint Medicines Corp. has moved from very attractive to risky, indicating a significant shift in its financial outlook. The company is currently assessed as overvalued, particularly given its negative P/E ratio due to losses, a Price to Book Value of 24.13, and an EV to EBITDA of -52.59, which highlights the challenges it faces in generating earnings relative to its enterprise value.
In comparison to its peers, Blueprint Medicines Corp. shows a stark contrast with ImmunoGen, Inc. and BridgeBio Pharma, Inc., which have EV to EBITDA ratios of 6.41 and -14.24, respectively. This suggests that Blueprint's valuation metrics are less favorable than those of its competitors. Additionally, the company's recent stock performance has outpaced the S&P 500, with a year-to-date return of 47.21% compared to the index's 2.44%, but this does not sufficiently mitigate the underlying valuation concerns.