Is Capricor Therapeutics, Inc. overvalued or undervalued?

As of 10 November 2022, the valuation grade for Capricor Therapeutics, Inc. has moved from does not qualify to risky, indicating increased concerns about its financial health. The company is currently considered overvalued given its negative P/E ratio, a price-to-book value of 5.10, and an EV to EBITDA ratio of -9.14. These metrics suggest that the company's valuation does not align with its financial performance, particularly as it is loss-making with a return on equity (ROE) of -43.14%.
In comparison to its peers, Capricor's valuation appears unfavorable. For instance, Chimerix, Inc. has a P/E ratio of -8.69, while CytomX Therapeutics, Inc. is rated attractive with a P/E of 9.01, highlighting the disparity in market perception and financial stability among these companies. Additionally, Capricor's recent stock performance has been poor, with a year-to-date return of -44.35%, contrasting sharply with the S&P 500's 2.44% gain, further reinforcing the view that the stock is overvalued in its current state.