Is Aytu Biopharma, Inc. overvalued or undervalued?

As of 14 May 2025, Aytu Biopharma, Inc. has moved from a grade of risky to attractive, indicating a significant improvement in its valuation outlook. The company is currently considered undervalued, particularly given its low P/E ratio of 2 and an EV to EBITDA ratio of 2.23, which are favorable compared to its peers. Additionally, Aytu's price to book value stands at 0.35, suggesting that the stock is trading at a substantial discount relative to its net assets.
In comparison to its peers, Aytu Biopharma's P/E ratio of 2.14 is notably lower than that of Eiger BioPharmaceuticals, which is classified as risky with a P/E ratio of -0.17. This stark contrast highlights Aytu's relative valuation strength. Furthermore, while the company has experienced a decline of 31.96% over the past year, it has outperformed the S&P 500 year-to-date with a return of 16.47% compared to the index's 2.44%. Overall, Aytu Biopharma presents an attractive investment opportunity in the current market landscape.