Is Verastem, Inc. overvalued or undervalued?

As of 8 August 2024, Verastem, Inc. has moved from a valuation grade of "does not qualify" to "risky." The company is currently considered overvalued. Key ratios indicate significant financial distress, with a Price to Book Value of -10.88 and an EV to Sales ratio of 31.17, suggesting that the market is pricing the company at a premium despite its negative earnings and capital structure.
In comparison to its peers, Verastem's P/E ratio is -2.2227, while Poseida Therapeutics, Inc. has a P/E of -15.2392 and Nuvation Bio, Inc. has a P/E of -3.2131, indicating that Verastem is less favorably positioned within the risky category. The company's recent stock performance has been poor, with a year-to-date return of -10.64% compared to the S&P 500's 2.44%, reinforcing the notion of overvaluation in the current market context.