Is Elutia, Inc. overvalued or undervalued?

As of 1 March 2021, Elutia, Inc. has moved from a grade of "does not qualify" to "risky," indicating a significant change in its valuation outlook. The company is currently considered undervalued, primarily due to its negative financial ratios, including a Price to Book Value of -2.14 and an EV to EBITDA of -4.91. These figures suggest that the market is pricing the company at a discount relative to its financial performance.
In comparison to its peers, Elutia's P/E ratio is -2.5964, while Catalyst Biosciences, Inc. is classified as expensive with a P/E of 90.0214, and IGC Pharma, Inc. is also risky with a P/E of -2.9560. The stark contrast in valuations highlights Elutia's potential for recovery, despite its current challenges. Additionally, the company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -53.48%, further reinforcing the perception of it being undervalued in the market.