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 increased concerns about its financial health. The company appears to be overvalued, given its significant negative return metrics and poor financial ratios. Key ratios include a Price to Book Value of 2.39, an EV to EBIT of -3.07, and an EV to EBITDA of -3.36, all of which suggest underlying weaknesses in profitability and valuation.
In comparison to peers, Recursion Pharmaceuticals has a notably worse EV to EBITDA ratio than Arcellx, Inc. at -16.81 and Beam Therapeutics, Inc. at -2.08, highlighting its relative underperformance. Additionally, the company's stock has underperformed against the S&P 500, with a 1-year return of -28.65% compared to the index's 17.14%, reinforcing the notion that it is overvalued in the current market context.