Is TScan Therapeutics, Inc. overvalued or undervalued?

As of 10 November 2021, TScan Therapeutics, Inc. has moved from a grade of "does not qualify" to "risky." The company is currently considered overvalued based on its financial metrics. Key ratios include a Price to Book Value of 0.48, an EV to EBIT of 0.81, and an EV to EBITDA of 0.83, which indicate a significant discrepancy in valuation compared to its peers.
In comparison to its industry peers, TScan's valuation metrics are notably unfavorable. For instance, Trevi Therapeutics, Inc. has a P/E ratio of -15.40, while Heron Therapeutics, Inc. also carries a risky classification with a P/E of -38.21. Additionally, TScan's return on equity (ROE) is at a concerning -62.03%, which further supports the notion of overvaluation. The company's stock has underperformed significantly, with a year-to-date return of -52.3% compared to a modest 2.44% return for the S&P 500.