Is Mersana Therapeutics, Inc. overvalued or undervalued?

As of 9 May 2022, Mersana Therapeutics, Inc. has moved from a grade of does not qualify to risky. The company is currently overvalued based on its financial metrics. Key valuation 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, which indicate significant concerns regarding its valuation relative to its peers.
In comparison to its industry peers, Mersana's EV to EBITDA ratio of 0.40 is more favorable than Harpoon Therapeutics, Inc. at -13.4119 and Selecta Biosciences, Inc. at -2.6957, but still reflects a risky valuation environment. The company's stock has underperformed significantly, with a year-to-date return of -79.44% compared to the S&P 500's positive return of 12.22%, reinforcing the notion that Mersana is overvalued in the current market context.