Is ABVC BioPharma, Inc. overvalued or undervalued?

As of 14 August 2023, the valuation grade for ABVC BioPharma, Inc. has moved from risky to does not qualify, indicating significant concerns regarding its financial health. The company is currently considered overvalued given its high Price to Book Value of 4.85 and negative ratios such as EV to EBITDA at -17.19 and ROE at -41.12%. These figures suggest that the company is struggling to generate returns and is not effectively utilizing its capital.
In comparison to peers, ABVC BioPharma's EV to EBITDA ratio of -21.9563 is notably worse than Tempest Therapeutics, Inc. at -0.2631 and Aptorum Group Ltd. at -2.9175, highlighting its relative underperformance in the sector. The company's recent stock performance has been impressive, with a year-to-date return of 232.20%, significantly outpacing the S&P 500's 2.44% over the same period. However, this does not mitigate the valuation concerns, as the underlying financial metrics indicate that the stock may not be justified at its current price level.