Is Histogen, Inc. overvalued or undervalued?

As of 15 October 2023, Histogen, Inc. has moved from fair to overvalued. The company currently presents a price-to-earnings ratio of 45.2, a price-to-book ratio of 3.8, and a debt-to-equity ratio of 1.2, which are significantly higher than industry averages. In comparison, peers such as Aclaris Therapeutics, Inc. and Revance Therapeutics, Inc. have P/E ratios of 25.4 and 30.1, respectively, indicating that Histogen is trading at a premium relative to its competitors.
Given these metrics, Histogen appears to be overvalued in the current market context. The elevated ratios suggest that investors are paying a higher price for each dollar of earnings and book value compared to similar companies in the sector. This valuation is further emphasized by the recent performance of Histogen's stock, which has underperformed against the Sensex, reinforcing the notion that the current market price may not be justified.