Is Werewolf Therapeutics, Inc. overvalued or undervalued?

As of 11 August 2022, the valuation grade for Werewolf Therapeutics, Inc. moved from 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 1.11, an EV to Capital Employed of 0.05, and an ROCE of 1104.53%. However, the negative P/E ratio indicates that the company is loss-making, which raises concerns about its valuation.
In comparison to its peers, Werewolf Therapeutics, Inc. has a P/E ratio of -0.7406, while Chimerix, Inc. shows a P/E of -8.6897, and CytomX Therapeutics, Inc. stands out with an attractive P/E of 9.0127. The stark contrast in these ratios highlights the relative overvaluation of Werewolf Therapeutics in its sector. Additionally, the company's stock has underperformed significantly against the S&P 500 over the past year, with a return of -56.6% compared to the index's 10.26%, reinforcing the notion that it is overvalued at its current price of $1.25.