Is Arcus Biosciences, Inc. overvalued or undervalued?

As of 28 February 2023, the valuation grade for Arcus Biosciences, Inc. moved from attractive to risky, indicating a shift towards a more concerning outlook. The company appears to be overvalued given its negative financial metrics, including a Price to Book Value of 1.99 and an EV to Sales ratio of 0.84, which suggest that the market is pricing the stock higher than its underlying value. Additionally, the negative ROE of -73.63% further underscores the company's struggles in generating returns for shareholders.
In comparison to peers, Arcus Biosciences has a significantly worse P/E ratio of -4.0858, while Arcellx, Inc. and CymaBay Therapeutics, Inc. report P/E ratios of -20.9783 and -35.3832, respectively, indicating that Arcus is not the worst performer but still faces substantial challenges. The company's recent stock performance has been poor, with a year-to-date return of -16.45%, contrasting sharply with the S&P 500's positive return of 12.22% during the same period, highlighting the underperformance of Arcus relative to the broader market.