Is Selecta Biosciences, Inc. overvalued or undervalued?

As of 4 May 2023, the valuation grade for Selecta Biosciences, Inc. has moved from very attractive to risky, indicating a significant shift in investor sentiment. The company is currently assessed as overvalued, primarily due to its negative financial metrics. The price-to-book value stands at -13.03, while the EV to EBITDA ratio is at -2.85, both of which are concerning indicators of financial health. Additionally, the company's P/E ratio is not applicable as it is loss-making.
In comparison to its peers, Selecta Biosciences, Inc. shows a stark contrast to Stoke Therapeutics, Inc., which is rated attractive with a P/E of 12.66 and an EV to EBITDA of 6.60. Other peers like Foghorn Therapeutics, Inc. also reflect a risky valuation with an EV to EBITDA of -0.60. The company's recent stock performance has been notably poor, with a year-to-date return of -45.11%, significantly underperforming the S&P 500, which has returned 2.44% in the same period. This combination of negative ratios and poor relative performance reinforces the conclusion that Selecta Biosciences, Inc. is overvalued.