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 towards a more negative outlook. The company is currently considered overvalued given its financial metrics, particularly with a Price to Book Value of 1.98 and a negative EV to EBIT of -3.76. Additionally, the Return on Equity (ROE) stands at -21.08%, further highlighting the challenges the company faces in generating returns for its shareholders.
In comparison to its peers, CRISPR Therapeutics AG's P/E ratio is notably negative at -13.27, while Illumina, Inc. and BioMarin Pharmaceutical, Inc. have fair valuations with P/E ratios of 19.09 and 15.17, respectively. This stark contrast underscores the difficulties CRISPR is experiencing relative to its industry. Despite a strong year-to-date stock return of 59.91%, which outperformed the S&P 500's 12.22%, the longer-term outlook remains concerning, as reflected in the negative returns over the 3-year and 5-year periods.