Is Synlogic, Inc. overvalued or undervalued?

As of 6 March 2025, Synlogic, Inc. has moved from a grade of risky to does not qualify, indicating a significant downgrade in its valuation outlook. The company is currently assessed as overvalued given its financial metrics, including a Price to Book Value of 1.08, an EV to EBIT of 0.51, and an ROCE of 145.50%, despite reporting a negative ROE of -38.28%.
In comparison to its peers, Synlogic is positioned unfavorably against Poseida Therapeutics, Inc., which has a P/E of -15.24, and Xeris Biopharma Holdings, Inc., with a P/E of -15.77, both of which are also categorized as risky. The company's recent stock performance has underperformed the S&P 500, with a year-to-date return of -16.43% compared to the S&P 500's 2.44%. This combination of factors suggests that Synlogic, Inc. is overvalued in the current market environment.