Is Repare Therapeutics, Inc. overvalued or undervalued?

As of 8 August 2025, the valuation grade for Repare Therapeutics, Inc. has moved from risky to does not qualify, indicating a significant deterioration in its investment appeal. The company is overvalued based on its current financial metrics, particularly given its Price to Book Value of 0.50 and an EV to EBITDA ratio of 0.47, which suggest that the market is not pricing in the company's substantial losses and negative returns on equity of -98.52%. In comparison, PetIQ, Inc. shows a fair valuation with a P/E ratio of 27.10, highlighting the stark contrast in market perception between these two companies.
Repare's recent stock performance has been troubling, with a one-year return of -46.84% compared to the S&P 500's 17.14%, and a staggering decline of -94.65% over the past five years, while the S&P 500 has gained 96.61% in the same period. This underperformance reinforces the notion that Repare Therapeutics is not only struggling operationally but is also being viewed unfavorably by the market.