Is Foghorn Therapeutics, Inc. overvalued or undervalued?

As of 10 March 2022, the valuation grade for Foghorn Therapeutics, Inc. has moved from does not qualify to risky. The company appears to be overvalued given its negative valuation ratios, including a P/E ratio of -4.31, an EV to EBITDA of -0.40, and an EV to Sales of 1.58. In comparison to peers, Poseida Therapeutics, Inc. has a P/E ratio of -15.24, while Verastem, Inc. shows a P/E of -4.03, indicating that Foghorn's valuation is relatively high among its risky peers.
The lack of positive valuation metrics, along with the company's current price of 5.14, suggests that it is overvalued in the current market context. Although specific return data is not available for comparison against the S&P 500, the overall risk profile and negative ratios reinforce the notion that Foghorn Therapeutics is not a favorable investment at this time.