Is IonQ, Inc. overvalued or undervalued?

As of 28 March 2022, IonQ, Inc. moved from a "does not qualify" to a "risky" valuation grade. The company appears to be overvalued given its significant losses and high valuation ratios, including a Price to Book Value of 12.64, an EV to EBIT of -35.80, and an EV to Sales of 210.97. Compared to peers, IonQ's valuation metrics are concerning; for instance, Dell Technologies, Inc. has a P/E ratio of 20.77 and an EV to EBITDA of 13.19, while HP, Inc. shows a P/E of 8.89 and an EV to EBITDA of 7.37, indicating that IonQ is trading at a premium despite its financial struggles.
Additionally, IonQ has demonstrated impressive stock performance, with a 1-year return of 753.26% compared to the S&P 500's 17.14%, suggesting that market sentiment may not fully reflect its underlying financial health. However, the company's negative profitability metrics and high valuation ratios indicate that it may not sustain such performance in the long term.