Is Unity Biotechnology, Inc. overvalued or undervalued?

As of 15 March 2023, the valuation grade for Unity Biotechnology, Inc. has moved from risky to does not qualify, indicating a significant downgrade in its financial standing. The company is currently assessed as overvalued, particularly given its negative price-to-book value of -11.72 and an EV to EBIT ratio of 0.04, which suggests minimal enterprise value relative to earnings before interest and taxes. Additionally, the ROCE stands at an impressive 234.34%, but this is overshadowed by the overall financial instability reflected in the other ratios.
In comparison to its peers, Unity Biotechnology's valuation metrics are concerning. For instance, MAIA Biotechnology, Inc. has a valuation of -2.7810 with an EV to EBITDA of -2.1328, while MiNK Therapeutics, Inc. shows a valuation of -3.3419 with an EV to EBITDA of -3.4718. These comparisons highlight that Unity's financial ratios do not stand favorably against its industry counterparts. Furthermore, the company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -23.19% compared to the index's 2.44%, reinforcing the notion that Unity is currently overvalued.