Is Emergent BioSolutions, Inc. overvalued or undervalued?

As of 27 February 2023, the valuation grade for Emergent BioSolutions, Inc. has moved from expensive to risky. The company is currently considered overvalued given its financial metrics and performance relative to peers. Notably, the Price to Book Value stands at 0.67, while the EV to EBITDA ratio is at 14.99, indicating a concerning valuation amidst its loss-making status, as reflected by a P/E ratio that is not applicable.
In comparison to its peers, Emergent BioSolutions shows a stark contrast with Fusion Pharmaceuticals, which has a P/E of -17.58 and EV to EBITDA of -15.59, both indicating significant challenges. On the other hand, Rigel Pharmaceuticals is classified as very attractive with a P/E of 9.21 and an EV to EBITDA of 7.02, showcasing a more favorable valuation. Additionally, Emergent BioSolutions has underperformed against the S&P 500, with a year-to-date return of -31.8% compared to the S&P's 2.44%, reinforcing the view that the company is overvalued in its current state.