Is Enzo Biochem, Inc. overvalued or undervalued?

As of 9 June 2022, the valuation grade for Enzo Biochem, Inc. moved from fair to risky, indicating a deterioration in its financial outlook. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 0.67 and an EV to EBITDA ratio of 1.12, which suggests that the market may not be accurately pricing in the challenges faced by the company. Additionally, the negative ROE of -12.03% further underscores the financial difficulties.
In comparison to its peers, Enzo Biochem, Inc. has a significantly lower EV to EBITDA ratio than BioAtla, Inc. at -0.2934, highlighting its underperformance within the industry. Furthermore, the company's stock has underperformed against the S&P 500 over multiple periods, with a YTD return of -2.16% compared to the S&P 500's 12.22%, and a staggering 5Y return of -70.39% against the S&P's 96.61%. This trend reinforces the notion that Enzo Biochem, Inc. is currently overvalued.