Is Turnstone Biologics Corp. overvalued or undervalued?

As of 13 May 2024, the valuation grade for Turnstone Biologics Corp. has moved from risky to does not qualify, indicating a significant deterioration in its valuation outlook. The company is currently assessed as overvalued given its financial metrics, particularly with a Price to Book Value of 0.42 and an EV to EBITDA ratio of 0.22, which are low compared to industry standards. The Return on Capital Employed (ROCE) is extraordinarily high at 4781.82%, but this is misleading due to the negative Return on Equity (ROE) of -314.39%, reflecting the company's ongoing losses.
In comparison with peers, Turnstone Biologics Corp. has a negative P/E ratio of -0.138, while CARA Therapeutics, Inc. shows a more negative P/E of -6.235, and Kodiak Sciences, Inc. also does not qualify with a P/E of -0.9925. The company's current price of $0.37 is significantly down from its 52-week high of $3.05, and its year-to-date return of -25.88% starkly contrasts with the S&P 500's gain of 2.44% in the same period, reinforcing the view that the stock is overvalued in its current state.