Is Dynavax Technologies Corp. overvalued or undervalued?

As of 6 May 2025, the valuation grade for Dynavax Technologies Corp. has moved from fair to risky, indicating a shift towards a more cautious outlook. The company appears to be overvalued, particularly given its high P/E ratio of 54, which significantly exceeds the industry average, and a PEG ratio of 0.58 that suggests potential growth is not adequately reflected in the current price. Additionally, the EV to EBITDA ratio is notably negative at -832.88, further highlighting valuation concerns.
In comparison to its peers, Dynavax's P/E ratio is higher than that of Blueprint Medicines Corp. at -53.75 and Axsome Therapeutics, Inc. at -29.91, both of which are also classified as risky. The company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -23.65% compared to the index's 12.22%, reinforcing the notion of overvaluation amidst a challenging market environment.