Is Wave Life Sciences Ltd. overvalued or undervalued?

As of 16 March 2017, the valuation grade for Wave Life Sciences Ltd. moved from does not qualify to risky, indicating a shift towards a more cautious outlook. The company appears to be overvalued given its high Price to Book Value of 6.19 and negative EV to EBIT and EV to EBITDA ratios of -6.98 and -7.50, respectively. Additionally, the Return on Equity (ROE) stands at a concerning -62.52%, reflecting significant losses.
In comparison to its peers, Wave Life Sciences Ltd. has a less favorable EV to EBITDA ratio than Kymera Therapeutics, Inc. at -8.0367 and Adaptive Biotechnologies Corp. at -18.0891, both of which also carry a risky valuation. Despite a positive one-year stock return of 27.24%, which outperformed the S&P 500's 17.14%, the longer-term performance is troubling, with a five-year return of -64.38% compared to the S&P 500's 96.61%. This suggests that while there may be short-term gains, the overall outlook remains bleak, reinforcing the view that the stock is overvalued.