Is AC Immune SA overvalued or undervalued?

As of 14 March 2024, the valuation grade for AC Immune SA has moved from does not qualify to risky, indicating a shift in perception towards the company's financial health. The company appears to be overvalued, given its negative earnings and significant losses reflected in key ratios. The price-to-book value stands at 2.00, while the EV to EBITDA and EV to EBIT ratios are both negative at -0.93 and -0.89, respectively, highlighting the challenges in generating positive cash flows.
In comparison with peers, AC Immune SA's P/E ratio is not applicable due to its loss-making status, while Lexicon Pharmaceuticals has a P/E of -3.53 and Vanda Pharmaceuticals has a P/E of -4.02, indicating that AC Immune is not alone in facing valuation challenges within this sector. Over the past year, AC Immune SA has underperformed significantly, with a return of -30.58% compared to the S&P 500's 17.14%, reinforcing the notion that the stock may be overvalued relative to its peers and the broader market.