Is LAVA Therapeutics NV overvalued or undervalued?

As of 17 May 2022, LAVA Therapeutics NV has moved from a grade of "does not qualify" to "risky." The company is currently considered overvalued. Key ratios include a Price to Book Value of 1.35, an EV to EBIT of 0.90, and a ROCE of 86.88%. Notably, the company has a negative P/E ratio due to being loss-making, which complicates traditional valuation metrics.
In comparison to its peers, LAVA Therapeutics NV's EV to EBITDA ratio of 0.91 is relatively better than Quince Therapeutics, Inc. at -1.1330 and Precision BioSciences, Inc. at -0.1189. However, the negative EV to Sales ratio of -6.32 indicates significant challenges in revenue generation. While LAVA has shown a strong year-to-date return of 43.01% compared to the S&P 500's 2.44%, its overall performance over longer periods remains concerning, reinforcing the view that it is overvalued in the current market environment.