Is Blue Water Biotech, Inc. overvalued or undervalued?

As of 29 August 2024, the valuation grade for Blue Water Biotech, Inc. has moved from does not qualify to risky, indicating increased concern regarding its financial health. The company appears to be overvalued given its significant losses and poor financial metrics, including a Price to Book Value of 0.11, an EV to EBIT of -1.72, and an EV to EBITDA of -1.89.
In comparison to peers, Blue Water Biotech's valuation ratios are concerning; for instance, Tonix Pharmaceuticals has an EV to EBITDA of -1.2007, while Cyclerion Therapeutics stands at -1.2082, both of which are better than Blue Water's metrics. The company's recent stock performance has been volatile, with a year-to-date return of 376.19%, significantly outperforming the S&P 500's 12.22%, but it has underperformed over the last year with a return of -36.44% compared to the S&P's 17.14%.