Is ARS Pharmaceuticals, Inc. overvalued or undervalued?

As of 14 May 2025, ARS Pharmaceuticals, Inc. has moved from an expensive to a risky valuation grade. The company is currently considered overvalued given its negative earnings and high valuation ratios. Key ratios include a price-to-book value of 6.22, an EV to EBITDA ratio of -43.15, and a return on equity (ROE) of -6.88%.
In comparison to peers, ARS Pharmaceuticals has a significantly lower P/E ratio of -92.41, while Procaps Group SA is rated very attractive with a P/E of 605.22, highlighting the disparity in valuation. Other risky peers like Liquidia Corp. show a P/E of -8.60, further indicating that ARS Pharmaceuticals is not competitively valued within its industry. Notably, the company's stock has outperformed the S&P 500 over the past year, returning 102.82% compared to the index's 10.26%, but this does not mitigate the concerns regarding its current valuation status.