Is Elicio Therapeutics, Inc. overvalued or undervalued?

As of 10 May 2023, Elicio Therapeutics, Inc. has moved from a valuation grade of risky to does not qualify, indicating a significant deterioration in its financial standing. The company is currently considered overvalued, given its negative financial metrics, including a Price to Book Value of 14.08 and an EV to EBIT of -2.36. Additionally, the Return on Equity (ROE) is alarmingly low at -508.10%, reflecting severe inefficiencies in generating profit from equity.
In comparison to its peers, Elicio's metrics are concerning. For instance, Avrobio, Inc. has an EV to EBITDA of -1.2033, while Eliem Therapeutics, Inc. shows a more favorable EV to EBITDA of 0.3575. These comparisons highlight Elicio's relative weakness in the market. Despite a recent strong performance against the S&P 500, with a year-to-date return of 57.25% compared to 2.44% for the index, the underlying financial ratios suggest that the stock is not justified at its current price level of 8.02.