Is Tango Therapeutics, Inc. overvalued or undervalued?

As of 9 August 2021, the valuation grade for Tango Therapeutics, Inc. changed from does not qualify to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued given its negative financial metrics, including a Price to Book Value of 2.77 and an EV to Sales ratio of 6.04, which suggest that investors are paying a premium despite the company's losses. Additionally, the ROE stands at a concerning -79.32%, further underscoring the company's challenges.
In comparison to its peers, Tango Therapeutics has a significantly higher EV to EBITDA ratio of -1.73 compared to Vir Biotechnology, Inc. at -0.0645 and Xencor, Inc. at -2.2827, indicating that it is less efficient in generating earnings before interest, taxes, depreciation, and amortization. Despite a strong year-to-date stock return of 154.69%, which outperformed the S&P 500's 12.22%, the overall negative returns over one year (-4.95%) and five years (-22.46%) suggest that the stock's recent performance may not be sustainable, reinforcing the notion that it is overvalued.