Is Invivyd, Inc. overvalued or undervalued?

As of 14 August 2024, the valuation grade for Invivyd, Inc. has moved from does not qualify to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued, given its negative P/E ratio and troubling returns on capital and equity, with figures of -2120.73% and -263.57%, respectively. Additionally, the Price to Book Value stands at 2.19, while the EV to Sales ratio is 1.95, both suggesting that the stock may not be justified at its current price.
In comparison to its peers, Invivyd's valuation ratios are significantly weaker, with Poseida Therapeutics, Inc. showing a P/E of -15.2392 and Verastem, Inc. at -4.0339, both indicating a similar risk profile but with less severe metrics. Despite recent strong returns, such as a 115.11% increase over the past month compared to the S&P 500's 2.33%, the long-term outlook remains concerning, particularly with a 3-year return of -67.45% against the S&P 500's 70.41%. This suggests that while short-term gains may be enticing, the overall valuation and financial health of Invivyd, Inc. warrant caution.