Is YS Biopharma Co. Ltd. overvalued or undervalued?

As of 10 May 2024, YS Biopharma Co. Ltd. has moved from a fair to a risky valuation grade, indicating a significant deterioration in its investment appeal. The company is currently assessed as overvalued given its financial metrics, particularly with a Price to Book Value of 0.23 and an EV to EBITDA ratio of 3.60, which, while low, is overshadowed by its negative earnings performance. The Return on Equity (ROE) stands at a concerning -22.61%, highlighting the company's struggles in generating profit relative to shareholder equity.
In comparison to its peers, YS Biopharma's valuation appears unfavorable. For instance, Champions Oncology, Inc. is rated attractive with a P/E ratio of 17.32, while YS Biopharma's valuation metrics reflect a risky outlook with a negative P/E ratio of -0.99. Additionally, the company's stock performance has been dismal, with a year-to-date return of -71.97%, starkly contrasting with the S&P 500's positive return of 2.44% over the same period. Overall, the combination of poor financial ratios and negative stock performance suggests that YS Biopharma is overvalued in the current market context.