Is ImmunityBio, Inc. overvalued or undervalued?

As of 12 August 2024, ImmunityBio, Inc. has moved from a grade of "does not qualify" to "risky." The company is considered overvalued based on its current financial metrics. Key valuation ratios include a Price to Book Value of -4.70, an EV to EBIT of -11.19, and an EV to EBITDA of -11.83, all indicating significant financial distress and negative performance relative to its assets and earnings.
In comparison to peers, ImmunityBio's P/E ratio is -5.48, while TG Therapeutics, Inc. is very expensive with a P/E of 83.91, and Mirum Pharmaceuticals, Inc. also carries a risky designation with a P/E of -66.39. This highlights the challenges ImmunityBio faces in the market. Despite a recent 1-week return of 10.04% compared to the S&P 500's 1.05%, the longer-term performance shows a stark contrast, with a 5-year return of -66.43% against the S&P 500's 96.61%, reinforcing the notion that the stock is overvalued.