Is Lineage Cell Therapeutics, Inc. overvalued or undervalued?

As of 12 August 2021, the valuation grade for Lineage Cell Therapeutics, Inc. moved from does not qualify to risky. The company is currently considered overvalued, given its significant negative financial ratios. The P/E ratio is not applicable due to the company being loss-making, while the Price to Book Value stands at 1.95, and the EV to Sales ratio is notably high at 11.24. Additionally, the ROCE is at a concerning -66.01%, and the ROE is -26.06%, indicating poor profitability and return on equity.
In comparison to its peers, Lineage Cell Therapeutics has a P/E ratio of -9.52, while Poseida Therapeutics, Inc. shows a P/E of -15.24 and Xeris Biopharma Holdings, Inc. at -15.77, all classified as risky. The company's recent stock performance has outpaced the S&P 500 over the past month, with a return of 37.31% compared to the index's 3.83%. However, the overall financial metrics suggest that Lineage Cell Therapeutics remains overvalued in the current market environment.