Is Rigetti Computing, Inc. overvalued or undervalued?

As of 15 November 2021, the valuation grade for Rigetti Computing, Inc. moved from does not qualify to risky, indicating a significant shift in assessment. The company appears to be overvalued, given its high valuation ratios such as a Price to Book Value of 15.93 and an EV to Sales ratio of 335.70, both of which suggest that the market may be pricing in unrealistic growth expectations. Additionally, the negative EV to EBITDA of -46.42 highlights the company's struggles to generate positive earnings before interest, taxes, depreciation, and amortization.
In comparison to its peers, Rigetti's P/E ratio of -69.59 is slightly better than D-Wave Quantum, Inc.'s -71.20, while both companies share a risky classification. Despite these concerning metrics, Rigetti has shown remarkable stock performance, with a 1-year return of 2917.07%, significantly outpacing the S&P 500's 17.14% return over the same period. This dramatic rise may not be sustainable, reinforcing the notion that the stock is currently overvalued.