Is Verve Therapeutics, Inc. overvalued or undervalued?

As of 2 March 2023, the valuation grade for Verve Therapeutics, Inc. has moved from does not qualify to risky, indicating a higher level of uncertainty regarding its valuation. The company appears to be overvalued given its negative financial metrics, including a Price to Book Value of 1.17, an EV to Sales ratio of 1.12, and a troubling ROE of -38.58%. Comparatively, peers such as ADMA Biologics, Inc. have a fair valuation with a P/E of 18.56, while Kymera Therapeutics, Inc. shows a risky valuation with a P/E of -11.23, highlighting the challenges Verve faces in the market.
In terms of recent performance, Verve Therapeutics has outperformed the S&P 500 with a year-to-date return of 97.34% compared to the index's 12.22%, although it has struggled over the longer term with a three-year return of -63.64% versus the S&P 500's 70.41%. This mixed performance further complicates the valuation narrative, suggesting that while there may be short-term gains, the overall financial health and valuation metrics indicate that the stock is overvalued.