Is Verastem, Inc. overvalued or undervalued?

As of 8 August 2024, the valuation grade for Verastem, Inc. has moved from does not qualify to risky, indicating a more cautious outlook. The company appears to be overvalued given its negative valuation ratios, including a Price to Book Value of -10.88 and an EV to EBITDA of -2.38. Additionally, the negative ROCE and ROE further underscore the challenges facing the company.
In comparison to its peers, Verastem's P/E ratio is -4.0339, while Poseida Therapeutics, Inc. has a P/E of -15.2392 and MeiraGTx Holdings Plc stands at -3.8154, highlighting that Verastem is not the most attractive option within its sector. Despite recent strong returns, with a 1Y stock return of 252.03% compared to the S&P 500's 17.14%, the underlying valuation metrics suggest that caution is warranted.