Is Organovo Holdings, Inc. overvalued or undervalued?

As of 10 May 2023, Organovo Holdings, Inc. has moved from a grade of risky to does not qualify, indicating a significant deterioration in its valuation outlook. The company is currently considered overvalued given its financial metrics and peer comparisons. Key ratios include a Price to Book Value of 0.30, an EV to EBIT of 0.60, and an EV to EBITDA of 0.61, which suggest that while the company has low valuations relative to its earnings potential, the overall financial health remains concerning.
In comparison to its peers, Organovo's valuation metrics are less favorable; for instance, Frequency Therapeutics, Inc. has a P/E ratio of -1.3504 and an EV to EBITDA of -0.0590, while Surrozen, Inc. shows a P/E of 6.4924 and an EV to EBITDA of 0.8737. These comparisons highlight that Organovo's financial standing is not only weak but also that it does not qualify for a standard valuation assessment. Furthermore, the company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -73.36% compared to the index's 2.44%, reinforcing the notion that it is overvalued in the current market context.