Is BioXcel Therapeutics, Inc. overvalued or undervalued?

As of 14 August 2023, the valuation grade for BioXcel Therapeutics, Inc. has moved from does not qualify to risky, indicating a significant shift in its perceived financial health. The company is currently considered overvalued, given its negative P/E ratio and troubling financial metrics. Key ratios include a Price to Book Value of -0.12, an EV to EBIT of -1.74, and an EV to Sales of 46.46, all of which suggest severe operational challenges and a lack of profitability.
In comparison to its peers, BioXcel's valuation appears particularly unfavorable. For instance, Compugen Ltd. has a P/E ratio of -10.91 and an EV to EBITDA of -3.45, while Champions Oncology, Inc. stands out with a P/E of 17.32 and an EV to EBITDA of 12.59, highlighting the stark contrast in valuation and operational performance within the sector. The company's recent stock performance has also been dismal, with a year-to-date return of -72.42%, significantly underperforming the S&P 500's 2.44% return, further reinforcing the notion of overvaluation.