Is Humacyte, Inc. overvalued or undervalued?

As of 14 August 2023, the valuation grade for Humacyte, Inc. has moved from risky to does not qualify, indicating a significant deterioration in its financial health. The company is currently overvalued, as evidenced by its price-to-book value of 11.15 and negative EV to EBITDA of -3.93, which highlight the lack of profitability and excessive valuation relative to its assets. Additionally, the return on capital employed (ROCE) stands at a staggering -261.68%, and return on equity (ROE) is at -333.22%, further underscoring the company's financial struggles.
In comparison to its peers, Humacyte's EV to EBITDA ratio of -3.93 is better than that of uniQure NV at -5.35 and Precigen, Inc. at -3.90, but still reflects a challenging environment for the company. The stock has underperformed significantly against the S&P 500, with a year-to-date return of -56.24% compared to the index's 2.44%, reinforcing the notion that Humacyte is not a viable investment at its current valuation.