Is NovoCure Ltd. overvalued or undervalued?

As of 29 July 2021, the valuation grade for NovoCure Ltd. moved from fair to risky, indicating a more cautious outlook on the stock. The company appears to be overvalued given its high Price to Book Value of 5.24 and negative EV to EBIT and EV to EBITDA ratios of -9.77 and -10.51, respectively. Additionally, the Return on Capital Employed (ROCE) stands at a concerning -190.50%, further emphasizing the company's struggles.
In comparison to its peers, NovoCure's EV to EBITDA ratio of -7.2229 is significantly worse than that of TransMedics Group, which has a fair valuation with an EV to EBITDA of 37.0142. Other risky peers like iRhythm Technologies show an even more negative EV to EBITDA of -145.8167. The stock's performance has lagged behind the S&P 500, with a year-to-date return of -56.38% compared to the index's 12.22%, reinforcing the notion that NovoCure is currently overvalued.