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 shift in perception regarding its financial health. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 1.28, an EV to EBIT of 0.05, and an EV to EBITDA of 0.06, which suggest that the market may be pricing in more value than the underlying fundamentals support.
When compared to peers, Equillium's EV to EBITDA ratio of -4.9420 is significantly worse than OncoCyte Corp.'s -2.1276, highlighting a concerning valuation relative to its industry. Additionally, the company's recent stock performance shows a stark contrast to the S&P 500, with a 1-week return of -24.62% compared to the index's 1.05%, further reinforcing the notion that Equillium is currently overvalued.