Is IGM Biosciences, Inc. overvalued or undervalued?

As of 30 March 2023, IGM Biosciences, Inc. has moved from a grade of "does not qualify" to "risky." The company is currently overvalued based on its financial metrics. The Price to Book Value stands at an exceptionally high 79.35, while the EV to EBITDA ratio is 0.41, indicating significant valuation concerns. Additionally, the ROCE is an impressive 118.81%, but this is overshadowed by a staggering ROE of -16082.30%, reflecting severe profitability issues.
In comparison with peers, IGM Biosciences, Inc. shows a P/E ratio of -0.4448, while Fulcrum Therapeutics, Inc. has a P/E ratio of 223.4945, highlighting the disparity in valuation within the sector. Other peers like Vanda Pharmaceuticals, Inc. also exhibit risky valuations with a P/E of -5.9803. The company's stock has significantly underperformed against the S&P 500, with a year-to-date decline of 81.01%, reinforcing the notion that it is overvalued in the current market environment.