Is Recursion Pharmaceuticals, Inc. overvalued or undervalued?

As of 12 May 2021, the valuation grade for Recursion Pharmaceuticals, Inc. moved from does not qualify to risky, indicating a heightened level of concern regarding its financial health. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 2.39 and an EV to Sales ratio of 29.52, which are significantly higher than typical industry standards. Additionally, the negative P/E ratio reflects its loss-making status, further complicating its valuation.
In comparison to peers, Recursion's EV to EBITDA stands at -3.36, while Arcellx, Inc. has a much lower EV to EBITDA of -15.86, and Alvotech shows a positive EV to EBITDA of 28.35, highlighting the disparity in financial performance among these companies. The company's return metrics also raise concerns, with a one-year stock return of -45.42% compared to the S&P 500's 10.26%, reinforcing the notion that Recursion Pharmaceuticals is currently overvalued.