Is Assertio Holdings, Inc. overvalued or undervalued?

As of 8 November 2023, the valuation grade for Assertio Holdings, Inc. has moved from attractive to risky, indicating a significant deterioration in its financial outlook. The company is currently considered overvalued based on its financial metrics. Key ratios include a Price to Book Value of 0.58, an EV to EBITDA of 6.51, and a negative ROCE of -39.77%.
When compared to peers, Assertio's valuation appears unfavorable; for instance, Ocular Therapeutix, Inc. has a more severe EV to EBITDA of -5.2132, while Vanda Pharmaceuticals, Inc. shows an EV to EBITDA of 1.1136. The company's recent stock performance has been notably poor, with a year-to-date return of -27.54%, significantly underperforming the S&P 500's 2.44% return in the same period. This combination of factors suggests that Assertio Holdings, Inc. is not a favorable investment at its current valuation.