Is Avenue Therapeutics, Inc. overvalued or undervalued?

As of 14 August 2025, the valuation grade for Avenue Therapeutics, Inc. has moved from does not qualify to risky, indicating a significant downgrade in its investment appeal. The company appears to be overvalued, given its negative financial metrics, including a Price to Book Value of 0.24 and an EV to EBITDA ratio of 0.28. Additionally, the Return on Equity (ROE) is alarmingly low at -393.59%, highlighting severe profitability issues.
In comparison to its peers, Avenue Therapeutics has a P/E ratio of -0.3745, while Fresh Tracks Therapeutics, Inc. has a P/E of 0.8418, indicating that Avenue is lagging behind in valuation metrics. Furthermore, Pulmatrix, Inc. shows a more negative EV to EBITDA ratio of -1.4762, suggesting that Avenue's valuation is less favorable in the context of its industry. Notably, the company's stock has underperformed significantly, with a year-to-date return of -57.50% compared to the S&P 500's 12.22%, reinforcing the notion that it is overvalued in the current market environment.