Is Athersys, Inc. overvalued or undervalued?

As of 16 August 2023, Athersys, Inc. has moved from a grade of risky to does not qualify, indicating significant concerns regarding its valuation. The company is currently assessed as overvalued given its financial ratios, including a P/E ratio of 0.00 and an EV to EBITDA of -0.43, which suggest a lack of profitability and negative enterprise value metrics. Furthermore, the ROE stands at an extraordinarily high 118.05%, but this is misleading due to negative capital employed, highlighting the company's precarious financial situation.
In comparison to its peers, such as Frequency Therapeutics, Inc. with a P/E of -1.3504 and Landos Biopharma, Inc. with a P/E of -2.9258, Athersys does not present a compelling investment case. The overall peer group reflects a challenging environment, with many companies also classified as not qualifying or risky. Given these factors, Athersys appears to be overvalued, especially considering its drastic stock performance, which has seen a 100% decline over the past year compared to a 10.26% return for the S&P 500.