Is Molecular Templates, Inc. overvalued or undervalued?

As of 28 March 2018, the valuation grade for Molecular Templates, Inc. has moved from does not qualify to risky, indicating significant concerns about the company's financial health. The company appears to be overvalued given its current situation, particularly highlighted by a P/E ratio of 0.00 and an EV to EBITDA ratio of 0.51, which suggests that the market is not assigning any value to its earnings potential. Additionally, the ROE stands at a staggering -259.19%, reflecting severe losses relative to shareholder equity.
In comparison to its peers, Molecular Templates, Inc. is positioned unfavorably against companies like Precision BioSciences, Inc., which has a P/E of -1.4199 and an EV to EBITDA of -0.1189, and LAVA Therapeutics NV, with a P/E of -1.0316 and an EV to EBITDA of 0.9262. These comparisons further underscore the risks associated with investing in Molecular Templates, Inc. The company's stock has drastically underperformed, with a year-to-date return of -99.75% compared to a modest 2.44% return for the S&P 500, reinforcing the view that it is overvalued in the current market context.