Is Equillium, Inc. overvalued or undervalued?

As of 23 March 2023, the valuation grade for Equillium, Inc. has moved from does not qualify to risky, indicating a significant shift in its perceived investment quality. The company appears to be overvalued given its current financial metrics and performance. Key ratios include a Price to Book Value of 1.28, an EV to EBIT of 0.05, and an EV to EBITDA of 0.06, all of which suggest that the company is struggling to generate value relative to its enterprise value.
In comparison to its peers, Equillium, Inc. has a negative P/E ratio of -0.8427, while OncoCyte Corp., also classified as risky, shows a P/E of -3.9768. This highlights that Equillium is not only underperforming but is also positioned unfavorably against its peers. Additionally, the company's stock has significantly underperformed against the S&P 500, with a year-to-date decline of 61.24% compared to a 2.44% increase in the index. Overall, these indicators reinforce the conclusion that Equillium, Inc. is overvalued in the current market environment.