Is Mersana Therapeutics, Inc. overvalued or undervalued?

As of 9 May 2022, Mersana Therapeutics, Inc. has moved from a grade that does not qualify to a risky classification. The company is currently considered overvalued based on its financial ratios and peer comparisons. Key ratios include a Price to Book Value of -1.56, an EV to EBIT of 0.39, and an EV to EBITDA of 0.40, all of which indicate significant financial distress.
In comparison to its peers, Mersana's valuation metrics are concerning. For instance, Stoke Therapeutics, Inc. is rated attractive with a P/E ratio of 12.66, while Harpoon Therapeutics, Inc. is also classified as risky with a P/E ratio of -28.51. Mersana's negative performance is further highlighted by its substantial decline in stock price, with a year-to-date drop of 76.18%, compared to a modest 2.44% gain in the S&P 500. This stark contrast reinforces the view that Mersana is overvalued in its current state.