Is Orchestra Biomed Holdings, Inc. overvalued or undervalued?

As of 9 February 2023, the valuation grade for Orchestra Biomed Holdings, Inc. has moved from does not qualify to risky. The company is currently assessed as overvalued based on its financial metrics. Key ratios include a Price to Book Value of 7.52, an EV to EBIT of -1.34, and a ROE of -393.27%, indicating significant financial distress and a lack of profitability.
In comparison to its peers, Orchestra Biomed's valuation appears unfavorable. For instance, CareDx, Inc. is categorized as very attractive with a P/E ratio of -58.5934, while Surmodics, Inc. also holds a risky status with a P/E of -36.7377. The company's recent stock performance has been poor, with a year-to-date return of -22.5%, significantly lagging behind the S&P 500's gain of 2.44% during the same period, reinforcing the notion of overvaluation.