Is Capricor Therapeutics, Inc. overvalued or undervalued?

As of 10 November 2022, the valuation grade for Capricor Therapeutics, Inc. moved from does not qualify to risky, indicating a shift towards greater concern regarding its financial health. The company appears to be overvalued, as evidenced by its high Price to Book Value of 5.10 and negative EV to EBIT and EV to EBITDA ratios of -8.90 and -9.14, respectively. Additionally, the Return on Equity (ROE) stands at a concerning -43.14%, further highlighting the company's struggles.
In comparison to its peers, Capricor's valuation metrics are less favorable; for instance, Chimerix, Inc. has a more negative EV to EBITDA of -6.6011, while CytomX Therapeutics, Inc. is classified as very attractive with a P/E of 7.4924. The stock has underperformed against the S&P 500 in several periods, notably with a year-to-date return of -53.62% compared to the S&P 500's 12.22%, reinforcing the notion that Capricor may be overvalued in the current market environment.