Is AbCellera Biologics, Inc. overvalued or undervalued?

As of 4 May 2023, the valuation grade for AbCellera Biologics, Inc. moved from expensive to risky, indicating a shift in perception regarding its valuation. The company appears to be overvalued given its financial metrics, particularly with a Price to Book Value of 0.71 and an EV to Sales ratio of 4.44, which suggests that the market is pricing the company at a premium compared to its asset value and sales generation capabilities. Additionally, the negative EV to EBITDA of -0.45 and ROCE of -81.17% further highlight the challenges the company faces in generating returns.
In comparison to its peers, AbCellera's valuation ratios are concerning; for instance, Arcellx, Inc. has a significantly higher EV to EBITDA of -16.8112, while CymaBay Therapeutics, Inc. shows an even more negative EV to EBITDA of -34.0912. This positions AbCellera in a risky category alongside other companies struggling with profitability. Notably, the company has outperformed the S&P 500 with a year-to-date return of 61.09% compared to the index's 12.22%, but its long-term performance over three years shows a decline of -54.4%, which raises further concerns about its sustainability and future growth prospects.