Is Omega Therapeutics, Inc. overvalued or undervalued?

As of 8 November 2022, the valuation grade for Omega Therapeutics, Inc. moved from does not qualify to risky. The company is currently considered overvalued given its significant financial challenges, including a P/E ratio of NA due to losses, a price to book value of 0.15, and an EV to EBITDA ratio of 0.02. These metrics indicate a company struggling to generate positive returns, as evidenced by a ROE of -633.21%.
In comparison to its peers, Omega Therapeutics has a less favorable standing; for instance, Theseus Pharmaceuticals, Inc. is rated fair with a P/E of -3.1720, while Vaxart, Inc. is also risky with a P/E of -2.3400. The stark contrast in valuations highlights the challenges Omega faces in the market. Additionally, the company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -96.67%, reinforcing the notion that it is overvalued in its current state.