Is Lyell Immunopharma, Inc. overvalued or undervalued?

As of 29 February 2024, the valuation grade for Lyell Immunopharma, Inc. has moved from risky to does not qualify, indicating a significant downgrade in its investment appeal. The company's current valuation suggests it is overvalued, particularly given its negative financial metrics. Key ratios include a price-to-book value of 0.56 and an EV to EBITDA of 0.50, which, while low, reflect the company's struggles rather than an attractive investment opportunity.
In comparison to its peers, Lyell Immunopharma's valuation metrics are concerning. For instance, Scholar Rock Holding Corp. has a more negative EV to EBITDA of -9.8457, while Janux Therapeutics, Inc. shows a risky valuation with an EV to EBITDA of -3.1688. Furthermore, Lyell's return performance has been dismal, with a year-to-date decline of 29.77%, contrasting sharply with the S&P 500's 2.44% gain. Overall, the combination of negative ratios and poor market performance reinforces the view that Lyell Immunopharma is currently overvalued.