Is LAVA Therapeutics NV overvalued or undervalued?

As of 17 May 2022, LAVA Therapeutics NV's valuation grade moved from does not qualify to risky, indicating a shift towards a more cautious assessment. The company appears to be overvalued given its current financial metrics, particularly with a Price to Book Value of 1.35 and an EV to EBIT of 0.90, which suggests that the market may be pricing in expectations that are not supported by its earnings performance. Additionally, the ROE is notably negative at -128.56%, further emphasizing the challenges the company faces.
In comparison to its peers, LAVA's valuation ratios are less favorable; for instance, Precision BioSciences, Inc. has a more favorable EV to EBITDA of -0.2328, while Marker Therapeutics, Inc. shows a better EV to EBIT at 0.0342. The stock has underperformed against the S&P 500 over the past year, returning -12.5% compared to the index's 17.14%, reinforcing the notion that LAVA may not be a compelling investment at its current price.