Is Celularity, Inc. overvalued or undervalued?

As of 14 August 2023, the valuation grade for Celularity, Inc. has moved from attractive to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 5.64 and an EV to Sales ratio of 1.69, which suggest a premium valuation despite significant operational losses reflected in its negative P/E and ROE of -612.01%.
In comparison to its peers, Celularity's valuation ratios are concerning; for instance, PaySign, Inc. has a P/E of 42.86, while FONAR Corp. shows a fair valuation with a P/E of 8.99. The stark contrast in these ratios highlights Celularity's relative overvaluation in a challenging industry. Additionally, the company's recent stock performance has been poor, with a 1-month return of -47.23% compared to the S&P 500's 2.33%, reinforcing the notion that the stock is struggling significantly.