Is Foghorn Therapeutics, Inc. overvalued or undervalued?

As of 10 March 2022, the valuation grade for Foghorn Therapeutics, Inc. moved from does not qualify to risky, indicating a significant shift in its perceived investment quality. The company is currently considered overvalued, particularly given its negative financial ratios, including a Price to Book Value of -4.03 and an EV to EBITDA of -0.40. The P/E ratio is not applicable due to the company being loss-making, which further complicates its valuation.
In comparison to its peers, Foghorn's valuation metrics are concerning. For instance, CorMedix, Inc. is classified as expensive with a P/E of 55.03, while Poseida Therapeutics, Inc. has a risky valuation with an EV to EBITDA of -13.33. Foghorn's current price of $4.89 reflects a decline of 7.74% over the past year, contrasting with the S&P 500's gain of 10.26% during the same period. This underperformance, coupled with its negative financial ratios, suggests that Foghorn Therapeutics is not a favorable investment at this time.