Is Surrozen, Inc. overvalued or undervalued?

As of 6 November 2024, Surrozen, Inc. has moved from a grade of does not qualify to risky. The company appears to be overvalued based on its current valuation metrics. The P/E ratio stands at 6, which is significantly lower than the industry average, while the EV to EBITDA ratio is 1.12, indicating potential inefficiencies in earnings relative to enterprise value. Additionally, the PEG ratio is exceptionally low at 0.05, suggesting that the stock may be undervalued in terms of growth expectations, but this is offset by the overall risk profile.
In comparison to its peers, Surrozen, Inc. has a P/E of 7.84, which is higher than Elutia, Inc. at -2.83 and GeoVax Labs, Inc. at -0.71, both of which are also classified as risky. The company’s ROE is notably high at 214.31%, indicating strong profitability relative to equity, but this does not mitigate the overall valuation concerns. Over the past year, Surrozen, Inc. has returned 49.56%, significantly outperforming the S&P 500's 17.14%, which may reflect short-term investor sentiment despite the underlying valuation risks.