Is Merus NV overvalued or undervalued?

As of 7 November 2016, the valuation grade for Merus NV moved from does not qualify to risky, indicating a heightened level of uncertainty regarding its financial health. The company appears to be overvalued, particularly given its high Price to Book Value of 7.02 and negative EV to EBIT and EV to EBITDA ratios of -12.39 and -12.49, respectively. Additionally, the Return on Capital Employed (ROCE) stands at a concerning -215.67%, further underscoring the challenges the company faces.
In comparison to its peers, Merus NV's EV to EBITDA ratio of -12.49 is less favorable than Arcellx, Inc. at -16.81 and CymaBay Therapeutics, Inc. at -34.09, suggesting that Merus is not performing as well as its competitors in the same industry. Despite this, the company has shown impressive stock performance, with a year-to-date return of 63.97%, significantly outpacing the S&P 500's 12.22% return during the same period. However, the overall financial metrics indicate that Merus NV is overvalued in the current market context.