Is Avalo Therapeutics, Inc. overvalued or undervalued?

As of 8 July 2024, Avalo Therapeutics, Inc. has moved from a risky valuation grade to one that does not qualify. Given the current metrics, the company appears to be overvalued. 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, which suggest that the company is not generating sufficient value relative to its market price.
In comparison to peers, Avalo's valuation ratios are significantly lower, with 180 Life Sciences Corp. showing an EV to EBITDA of -61.84 and ABVC BioPharma, Inc. at -23.18, indicating that Avalo is not alone in facing valuation challenges within its sector. Despite recent stock performance showing a 59.89% year-to-date return compared to the S&P 500's 12.22%, the long-term outlook remains concerning, particularly with a staggering -99.85% return over the past five years.