Is CRISPR Therapeutics AG overvalued or undervalued?

As of 8 August 2022, the valuation grade for CRISPR Therapeutics AG moved from fair to risky, indicating a shift in its perceived financial health. The company is currently considered overvalued, given its negative P/E ratio and troubling financial metrics. Key ratios include a Price to Book Value of 1.98, an EV to EBIT of -3.76, and an EV to Sales of 47.28, which highlight significant challenges in profitability and valuation.
In comparison to its peers, CRISPR Therapeutics AG's P/E ratio stands at -9.69, while BioMarin Pharmaceutical, Inc. is valued fairly with a P/E of 19.19, and ImmunoGen, Inc. is also risky with a P/E of 0.00. This stark contrast underscores the overvaluation of CRISPR Therapeutics AG relative to its industry peers. Additionally, the company's stock has shown a return of 15.73% year-to-date, outperforming the S&P 500's 2.44%, but this does not mitigate the overall concerns regarding its valuation.