Is Blueprint Medicines Corp. overvalued or undervalued?

As of 28 October 2021, the valuation grade for Blueprint Medicines Corp. has moved from fair to risky, indicating a shift towards a more negative outlook. Based on the available metrics, the company appears to be overvalued. The Price to Book Value stands at 24.13, while the EV to Capital Employed is 20.12, both suggesting a high valuation relative to its underlying assets. Additionally, the EV to Sales ratio of 14.82 further supports this assessment of overvaluation.
In comparison to its peers, Blueprint Medicines Corp. has a significantly negative EV to EBITDA of -52.59, while BridgeBio Pharma, Inc. shows a less severe -19.7279, indicating that Blueprint is underperforming relative to its industry. Moreover, Elanco Animal Health, Inc. is considered expensive with a P/E ratio of 19.2485, highlighting that Blueprint's valuation metrics are not competitive. Despite a strong year-to-date return of 48.43% compared to the S&P 500's 12.22%, the overall valuation suggests that the stock is not justified at its current price level.