Is Neoleukin Therapeutics, Inc. overvalued or undervalued?

As of 1 August 2019, Neoleukin Therapeutics, Inc. has moved from a risky valuation grade to one that does not qualify. The company is currently overvalued, given its significant financial challenges reflected in its ratios. The price-to-book value stands at 1.57, while the EV to EBITDA is a concerning -1.95, indicating that the company is not generating positive earnings before interest, taxes, depreciation, and amortization. Additionally, the return on equity (ROE) is at -27.71%, highlighting the company's struggles in generating profit from shareholders' equity.
In comparison to its peers, Neoleukin's valuation metrics are alarming. For instance, CorMedix, Inc. shows a P/E ratio of 55.03, while Poseida Therapeutics, Inc. has a P/E of -15.24, both indicating a stark contrast in performance and valuation. Furthermore, Neoleukin's recent stock performance has lagged significantly behind the S&P 500, with a year-to-date return of -24.67% compared to the index's 2.44%. Overall, the combination of poor financial ratios and underperformance relative to peers suggests that Neoleukin Therapeutics, Inc. is overvalued at its current price of $17.22.