Is CARA Therapeutics, Inc. overvalued or undervalued?

As of 1 March 2022, CARA Therapeutics, Inc. moved from an attractive to a risky valuation grade. The company is currently considered overvalued based on its negative valuation ratios, including a Price to Book Value of -33.03, an EV to EBIT of -9.00, and an EV to EBITDA of -9.05. In comparison to its peers, CARA's EV to EBITDA ratio is significantly worse than Cyteir Therapeutics, Inc. at 0.5746 and NGM Biopharmaceuticals, Inc. at 0.1302, both of which are in a fair or risky valuation category.
Despite its overvaluation, CARA has shown strong recent stock performance, with a year-to-date return of 111.00%, far exceeding the S&P 500's 12.22% over the same period. However, the long-term outlook remains concerning, with a 3-year return of -89.45% compared to the S&P 500's 70.41%.