Is NeuroPace, Inc. overvalued or undervalued?

As of 3 June 2021, the valuation grade for NeuroPace, Inc. moved from does not qualify to risky. The company appears to be overvalued based on its financial metrics. Key ratios include a Price to Book Value of 17.77, an EV to EBIT of -22.14, and an EV to Sales of 5.06, which suggest that the company is not generating sufficient earnings relative to its valuation.
In comparison to its peers, NeuroPace, Inc. has a P/E ratio of -12.59, while ZimVie, Inc. has a significantly higher P/E of -80.95, and AngioDynamics, Inc. stands at -24.69. These ratios indicate that NeuroPace is underperforming relative to its peers. Notably, the stock has outperformed the S&P 500 over the past year with a return of 51.32% compared to the S&P 500's 17.14%, but this does not negate the overall valuation concerns.