Is Apellis Pharmaceuticals, Inc. overvalued or undervalued?

As of 25 February 2021, the valuation grade for Apellis Pharmaceuticals, Inc. has moved from does not qualify to risky, indicating increased caution for investors. The company appears to be overvalued, given its negative valuation ratios, including a Price to Book Value of 14.76 and an EV to Sales ratio of 3.25, which are significantly higher than many of its peers. Notably, Exelixis, Inc. has a P/E ratio of 15.81 and an EV to EBITDA of 11.97, showcasing a more favorable valuation profile.
The company's recent performance has been concerning, with a YTD return of -26.73% compared to the S&P 500's 12.22%, highlighting a stark underperformance. Additionally, the ROE stands at -135.02%, further emphasizing the challenges Apellis faces in generating returns for shareholders. Overall, the combination of high valuation ratios and poor stock performance suggests that Apellis Pharmaceuticals is overvalued in the current market context.