Is Editas Medicine, Inc. overvalued or undervalued?

As of 30 March 2016, the valuation grade for Editas Medicine, Inc. moved from does not qualify to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 2.56 and an EV to EBITDA of 0.24, which suggest that the market is pricing the company at a premium despite its losses. Additionally, the ROCE stands at an impressive 142.55%, but this is overshadowed by a concerning ROE of -317.44%, reflecting significant financial distress. In comparison to its peers, Kura Oncology, Inc. has a more pronounced EV to EBITDA ratio of -0.3981, while Curis, Inc. stands at -1.1288, both indicating a more favorable valuation relative to Editas. The recent stock performance shows that while Editas has outperformed the S&P 500 on a year-to-date basis with a return of 136.22% compared to 12.22%, it has significantly underperformed over the longer term, with a 1-year return of -22.68% versus 17.14% for the index. This discrepancy reinforces the notion that Editas may be overvalued in the current market environment.