Is Senti Biosciences, Inc. overvalued or undervalued?

As of 13 August 2024, the valuation grade for Senti Biosciences, Inc. has moved from risky to does not qualify, indicating a significant deterioration in its financial standing. The company is currently overvalued given its financial metrics, including a Price to Book Value of 2.65 and an EV to Capital Employed ratio of 8.02, which suggest that investors are paying a premium for its assets despite the lack of profitability. Notably, the company's ROCE stands at a staggering -685.86%, and the ROE is also negative at -139.41%, highlighting severe operational inefficiencies.
In comparison to its peers, Senti Biosciences, Inc. has an EV to EBITDA of -1.29, while Pieris Pharmaceuticals, Inc. and Forte Biosciences, Inc. have EV to EBITDA ratios of -9.6042 and -0.7943, respectively. This indicates that Senti is underperforming relative to its peers in terms of earnings potential. Additionally, the company's recent stock performance has been dismal, with a year-to-date return of -43.3%, significantly underperforming the S&P 500's 2.44% return over the same period. Overall, the combination of negative financial ratios and poor market performance suggests that Senti Biosciences, Inc. is overvalued at its current price of $1.99.