Is AVITA Medical, Inc. overvalued or undervalued?

As of 13 May 2021, the valuation grade for AVITA Medical, Inc. has moved from does not qualify to risky. The company is currently overvalued based on its financial metrics. Key ratios include a Price to Book Value of -35.33, an EV to EBIT of -3.46, and an EV to EBITDA of -3.56, all indicating significant financial distress and negative performance.
In comparison to its peers, AVITA Medical's P/E ratio is -2.4152, while CareDx, Inc. is very attractive with a P/E of -58.5934, and AngioDynamics, Inc. also falls under the risky category with a P/E of -21.8992. The stark contrast in valuation metrics among these companies highlights the challenges AVITA faces. Additionally, the company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -59.84% compared to the index's 2.44%, reinforcing the notion that AVITA Medical is overvalued.