Is Bolt Biotherapeutics, Inc. overvalued or undervalued?

As of 30 March 2022, the valuation grade for Bolt Biotherapeutics, Inc. has moved from does not qualify to risky, indicating a significant shift in its perceived financial health. The company appears to be overvalued given its current financial metrics, including a Price to Book Value of 0.26, an EV to EBIT ratio of 0.39, and an EV to EBITDA ratio of 0.40, which suggest that the market is not adequately pricing in the risks associated with its negative earnings and substantial losses.
In comparison to its peers, Bolt Biotherapeutics has a P/E ratio of -0.1847, while Assembly Biosciences, Inc. also rated as risky, has a P/E ratio of -3.2679, indicating that both companies are struggling financially. Additionally, the company's return performance has been dismal, with a year-to-date decline of 47.67%, contrasting sharply with the S&P 500's modest gain of 2.44% over the same period. This further reinforces the conclusion that Bolt Biotherapeutics is overvalued in the current market environment.