Is REGENXBIO, Inc. overvalued or undervalued?

As of 28 February 2023, the valuation grade for REGENXBIO, Inc. moved from fair to risky, indicating a deterioration in its financial outlook. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 1.76 and an EV to Sales ratio of 1.76, which suggest that the market is pricing the stock higher than its underlying value. Additionally, the negative ROCE of -231.58% and ROE of -57.51% further highlight the company's struggles in generating returns for shareholders.
In comparison to peers, Keros Therapeutics, Inc. has a P/E ratio of 33.47, while Revance Therapeutics, Inc. shows a risky valuation with an EV to EBITDA of -4.03, underscoring the challenges faced by REGENXBIO. The company's stock has underperformed significantly over the long term, with a 5-year return of -68.75% compared to a 96.61% return for the S&P 500, reinforcing the notion that REGENXBIO is overvalued in its current state.