Is Fulgent Genetics, Inc. overvalued or undervalued?

As of 5 May 2023, the valuation grade for Fulgent Genetics, Inc. has moved from expensive to risky, indicating a shift in perception regarding its financial health and market position. The company appears to be overvalued, particularly given its negative earnings metrics and low valuation ratios. Key ratios include a Price to Book Value of 0.58, an EV to EBIT of -4.67, and an EV to EBITDA of -7.04, all of which suggest significant challenges in profitability and valuation relative to its assets and earnings.
In comparison to peers, Fulgent Genetics has a P/E ratio of -21.2754 and an EV to EBITDA of -8.0743, which are considerably worse than Ginkgo Bioworks Holdings, Inc., which has a P/E of -2.1642 and an EV to EBITDA of -0.7299. This stark contrast highlights the relative weakness of Fulgent's financial metrics within the industry. While specific return data is not available, the absence of positive returns reinforces the notion that the stock may not be performing well relative to broader market benchmarks like the S&P 500.