Is Cue Biopharma, Inc. overvalued or undervalued?

As of 8 August 2023, Cue Biopharma, Inc. has moved from a grade of does not qualify to risky, indicating a deterioration in its valuation outlook. The company appears to be overvalued given its high Price to Book Value of 7.34, a concerning EV to EBIT of -1.02, and an EV to EBITDA of -1.09, all reflecting significant financial distress.
In comparison to its peers, Theseus Pharmaceuticals, Inc. has a fair valuation with an EV to EBITDA of 0.3754, while Sangamo Therapeutics, Inc. also carries a risky valuation with an EV to EBITDA of -2.0816. The stark contrast in valuation metrics suggests that Cue Biopharma is not only underperforming relative to its peers but is also facing severe operational challenges. Additionally, Cue Biopharma's stock has underperformed against the S&P 500 across multiple periods, with a year-to-date return of -33.02% compared to the S&P 500's 12.22%, reinforcing the notion that the stock is overvalued.