Is Werewolf Therapeutics, Inc. overvalued or undervalued?

As of 14 August 2025, the valuation grade for Werewolf Therapeutics, Inc. has moved from risky to does not qualify, indicating a deterioration in its investment appeal. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 1.11 and an EV to Capital Employed of just 0.05, which suggest that the market may be pricing in more value than the company can deliver. Additionally, the ROCE stands at an impressive 1104.53%, but this is overshadowed by a negative ROE of -127.93%, highlighting significant financial challenges.
In comparison to its peers, Chimerix, Inc. has a P/E ratio of -8.6897, while CytomX Therapeutics, Inc. stands out as very attractive with a P/E of 7.4924. This suggests that Werewolf Therapeutics is not only lagging behind its competitors but also struggling to establish a solid valuation framework. Over the past year, the stock has returned -34.68%, significantly underperforming the S&P 500's 17.14%, reinforcing the notion that the stock is overvalued in the current market context.