Is HCW Biologics Inc. overvalued or undervalued?

As of 13 May 2022, the valuation grade for HCW Biologics Inc. has moved from does not qualify to risky, indicating a significant shift in its perceived financial health. The company is currently assessed as overvalued given its negative financial metrics. Key ratios include a Price to Book Value of -1.70, an EV to EBIT of -2.12, and an EV to EBITDA of -2.38, all of which highlight the company's struggles in generating positive returns.
In comparison to its peers, HCW Biologics Inc. has a P/E ratio of -0.9336, while Avrobio, Inc. shows a much worse P/E of -6.6206, and Enzo Biochem, Inc. has a P/E of -4.3784, both of which are also classified as risky. The stark contrast in performance is evident as HCW Biologics has experienced a staggering YTD return of -73.83%, significantly underperforming the S&P 500's 2.44% return. This further reinforces the conclusion that HCW Biologics Inc. is overvalued in the current market context.