Is AquaBounty Technologies, Inc. overvalued or undervalued?

As of 15 May 2025, AquaBounty Technologies, Inc. has moved from a grade of risky to does not qualify, indicating significant concerns regarding its financial health. The company is currently considered overvalued, particularly given its negative performance metrics. Key ratios include a price to book value of 0.18, an EV to EBIT of -0.18, and an EV to EBITDA of -0.19, all of which reflect a troubling financial situation.
In comparison to its peers, AquaBounty's financial ratios are significantly worse than those of Catalyst Biosciences, Inc., which has a P/E ratio of 90.02, and Elutia, Inc., which is rated risky with an EV to EBITDA of -4.64. Additionally, AquaBounty's return on capital employed (ROCE) stands at a staggering -93.65%, and its return on equity (ROE) is at -104.55%, further emphasizing its struggles. The company's stock has underperformed relative to the S&P 500, particularly over the past year, where it has declined by 54.53% compared to the index's increase of 10.26%.