Is Geron Corp. overvalued or undervalued?

As of 8 August 2024, the valuation grade for Geron Corp. has moved from does not qualify to risky, indicating a deterioration in its financial outlook. The company appears to be overvalued given its significant losses and negative return metrics. Key ratios include a Price to Book Value of 3.80, an EV to EBIT of -6.45, and an EV to EBITDA of -6.51, all of which suggest that the company's valuation is not supported by its financial performance.
In comparison to peers, Geron Corp. has a P/E ratio of -10.13, while Rhythm Pharmaceuticals, Inc. has a much steeper P/E of -36.41, and Aurinia Pharmaceuticals, Inc., which is rated fair, has a P/E of 20.87. The stark contrast in valuations highlights the challenges Geron Corp. faces in the market. Furthermore, the company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -62.71% compared to the index's 12.22%, reinforcing the notion that Geron Corp. is currently overvalued.