Is Geron Corp. overvalued or undervalued?

As of 8 August 2024, Geron Corp. has moved from a "does not qualify" to a "risky" valuation grade, indicating a significant shift in its perceived financial health. The company is currently considered overvalued, given its troubling financial ratios. The Price to Book Value stands at 3.80, while the EV to Sales ratio is 7.45, both suggesting that investors are paying a premium relative to the company's underlying assets and sales performance. Additionally, the company has a negative ROCE of -116.66% and a negative ROE of -51.19%, highlighting severe profitability issues.
In comparison to peers, Geron Corp.'s EV to EBITDA ratio of -6.51 is less favorable than that of Disc Medicine, Inc., which has an EV to EBITDA of -7.73, but significantly worse than Aurinia Pharmaceuticals, Inc., which has a fair valuation with an EV to EBITDA of 10.71. The stark contrast in performance metrics among these companies underscores Geron Corp.'s precarious position in the market. Furthermore, Geron Corp.'s stock has underperformed against the S&P 500, with a year-to-date decline of 59.89% compared to a modest gain of 2.44% for the index, reinforcing the notion that the stock is currently overvalued.