Is IGM Biosciences, Inc. overvalued or undervalued?

As of 30 March 2023, the valuation grade for IGM Biosciences, Inc. moved from does not qualify to risky, indicating a shift in perception regarding its financial health. The company is overvalued based on its current metrics, particularly highlighted by a Price to Book Value of 79.35, an EV to EBIT of 0.38, and an EV to EBITDA of 0.41. In comparison to peers, Lexicon Pharmaceuticals, Inc. has a more favorable EV to EBITDA of -2.8670, while Vanda Pharmaceuticals, Inc. shows an EV to EBITDA of 0.5601, suggesting that IGM may be lagging behind its competitors.
The stock has significantly underperformed against the S&P 500, with a year-to-date return of -79.21% compared to the index's gain of 12.22%. This stark contrast reinforces the notion that IGM Biosciences, Inc. is not only facing valuation challenges but is also struggling to deliver returns in the current market environment.