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, indicating a shift in perception regarding its financial health. The company appears to be overvalued based on its current metrics, particularly given its negative P/E ratio and poor returns on capital, with a Price to Book Value of 1.95, EV to Sales of 11.24, and ROE of -26.06%.
In comparison to peers, Lineage Cell Therapeutics has a significantly higher EV to EBITDA ratio of -5.19 compared to Poseida Therapeutics, Inc. at -13.3266 and Verastem, Inc. at -3.5165, suggesting it is less efficient in generating earnings relative to its enterprise value. Additionally, while the company has shown impressive stock returns year-to-date at 208.46%, outperforming the S&P 500's 12.22%, its long-term performance over 3 years and 5 years is lackluster compared to the benchmark, which raises concerns about its sustainability.