Is Virgin Galactic Holdings, Inc. overvalued or undervalued?

As of 8 November 2021, the valuation grade for Virgin Galactic Holdings, Inc. moved from does not qualify to risky, indicating increased concerns about its financial health. The company is considered overvalued, given its negative profitability ratios and high valuation metrics. Key ratios include a Price to Book Value of 0.49, an EV to Sales ratio of 7.16, and a ROCE of -199.12%, all of which suggest significant challenges in generating returns relative to its valuation.
In comparison to peers, Virgin Galactic's EV to EBITDA stands at -0.12, while its closest competitor has a valuation of -0.3785, highlighting the company's relative underperformance. The stock has significantly lagged behind the S&P 500, with a year-to-date return of -44.05% compared to the index's 12.22%, reinforcing the notion that the stock is overvalued in its current state.