Is Precision BioSciences, Inc. overvalued or undervalued?

As of 15 May 2025, the valuation grade for Precision BioSciences, Inc. has moved from attractive to risky, indicating a significant deterioration in its financial outlook. The company is currently overvalued, as evidenced by its negative P/E ratio and troubling financial metrics. The Price to Book Value stands at 1.32, while the EV to Sales ratio is only 0.23, suggesting that the market is not valuing the company's sales effectively. Additionally, the Return on Equity (ROE) is alarmingly low at -83.23%, reflecting severe inefficiencies in generating profit from equity.
In comparison to its peers, Precision BioSciences shows a stark contrast with companies like ImmuCell Corp., which has a P/E of -57.5710 and an EV to EBITDA of 25.5604. This highlights the challenges Precision faces in a competitive landscape where other firms are also struggling but may be managing their valuations slightly better. The company's recent stock performance has been dismal, with a one-year return of -51.81%, significantly underperforming the S&P 500's gain of 10.26% over the same period, further reinforcing the notion that it is overvalued in the current market context.