Is Cue Biopharma, Inc. overvalued or undervalued?

As of 8 August 2023, Cue Biopharma, Inc. has seen its valuation grade change from does not qualify to risky, indicating a significant shift in its perceived investment quality. The company is currently overvalued, particularly given its concerning financial ratios, including a Price to Book Value of 7.34, an EV to EBIT of -1.02, and an EV to Sales ratio of 5.27. These figures suggest that the market is pricing in expectations that may not be justified by the company's current financial performance.
In comparison to its peers, Cue Biopharma's EV to EBITDA stands at -1.09, while Immunome, Inc. has a similar risky valuation with an EV to EBITDA of -2.5424, and Theseus Pharmaceuticals, Inc. is rated fair with a more favorable EV to EBITDA of 0.3754. The stark contrast in these ratios highlights the challenges Cue Biopharma faces in the competitive landscape. Additionally, the company's stock has underperformed significantly against the S&P 500, with a year-to-date decline of 39.91% compared to the index's 2.44% gain, reinforcing the notion that it is currently overvalued.