Is Surrozen, Inc. overvalued or undervalued?

As of 6 November 2024, Surrozen, Inc. has moved from a valuation grade of "does not qualify" to "risky." The company appears to be undervalued, given its P/E ratio of 6, which is significantly lower than the industry average, and a PEG ratio of 0.05, indicating potential growth at a low price. Additionally, the EV to EBITDA ratio stands at 1.12, suggesting that the company is trading at a low multiple compared to its earnings before interest, taxes, depreciation, and amortization.
In comparison to peers, Surrozen's P/E ratio of 6.49 is more favorable than Microbot Medical, Inc., which has a P/E of -7.54, and Elutia, Inc. at -2.60. Despite the overall risky classification, Surrozen's strong ROE of 214.31% and ROCE of 27.39% highlight its operational efficiency. Notably, the company's stock has underperformed against the S&P 500 year-to-date, with a return of -37.14% compared to the S&P's 2.44%, reinforcing the notion that it may be undervalued in the current market context.