Is Virgin Galactic Holdings, Inc. overvalued or undervalued?

As of 8 November 2021, the valuation grade for Virgin Galactic Holdings, Inc. has moved from does not qualify to risky, indicating increased scrutiny on its financial health. The company is currently considered overvalued given its significant losses and poor performance metrics. Key ratios include a Price to Book Value of 0.49, an EV to EBIT of -0.11, and an EV to EBITDA of -0.12, all of which reflect the company's struggles to generate positive returns.
In comparison to its peers, Virgin Galactic's valuation is starkly contrasted with Archer Aviation, which has a P/E ratio of -12.11 and an EV to EBITDA of -10.68, indicating a more favorable position despite also being classified as does not qualify. Additionally, Cadre Holdings is considered expensive with a P/E of 33.56, emphasizing the disparity in valuation across the sector. The company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -49.83% compared to the S&P 500's 2.44%, further supporting the view that Virgin Galactic is overvalued.