Is REGENXBIO, Inc. overvalued or undervalued?

As of 28 February 2023, the valuation grade for REGENXBIO, Inc. has moved from attractive to risky, indicating a significant shift in its financial outlook. The company is currently considered overvalued, given its negative P/E ratio and troubling financial metrics. Key ratios include a Price to Book Value of 1.76, an EV to EBIT of -1.75, and an EV to EBITDA of -1.95, which highlight the company's struggles to generate positive earnings.
In comparison to peers, REGENXBIO's performance is concerning; for instance, Innoviva, Inc. has a P/E of 15.38 and an EV to EBITDA of 9.15, while Collegium Pharmaceutical, Inc. shows a fair valuation with a P/E of 14.78 and an EV to EBITDA of 4.82. The stark contrast in these ratios suggests that REGENXBIO is not only underperforming but also facing significant challenges in its operational efficiency and profitability. Additionally, the company's recent stock performance has lagged behind the S&P 500, with a 1-year return of -34.61% compared to the index's 10.26%, reinforcing the notion of its overvaluation.