Is Avalo Therapeutics, Inc. overvalued or undervalued?

As of 12 August 2024, Avalo Therapeutics, Inc. has moved from a grade of risky to does not qualify, indicating a significant deterioration in its valuation outlook. The company is currently overvalued, given its negative financial metrics and lack of profitability. Key ratios include a Price to Book Value of 0.36, an EV to EBIT of 1.55, and an EV to EBITDA of 1.56, all of which reflect the company's struggles in generating positive returns.
In comparison to its peers, Avalo's valuation metrics are concerning, especially when looking at companies like ABVC BioPharma, Inc. with an EV to EBITDA of -21.96 and Plus Therapeutics, Inc. with an EV to EBITDA of -0.02. These comparisons highlight Avalo's unfavorable position within its industry. Additionally, the company's stock has underperformed significantly over the past year, with a return of -63.27% compared to the S&P 500's 10.26%, reinforcing the notion that it is currently overvalued.