Is Generation Bio Co. overvalued or undervalued?

As of 9 November 2023, the valuation grade for Generation Bio Co. has moved from does not qualify to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued given its significant losses and poor performance metrics. Key ratios include a Price to Book Value of 0.40, an EV to EBIT of 1.63, and an EV to EBITDA of 1.75, which suggest that despite low valuations, the company's financial situation remains precarious.
In comparison to its peers, Generation Bio Co. has a negative P/E ratio of -0.6048, while Akebia Therapeutics, Inc. shows a much larger negative P/E of -30.5922, and scPharmaceuticals, Inc. has a P/E of -4.3946. This places Generation Bio in a challenging position within the industry. Additionally, the company's stock has significantly underperformed against the S&P 500, with a year-to-date return of -43.58% compared to the index's 12.22%, reinforcing the notion of overvaluation amidst its financial struggles.