Is CervoMed, Inc. overvalued or undervalued?

As of 10 May 2023, CervoMed, Inc. has moved from a valuation grade of "does not qualify" to "risky." The company is currently considered overvalued. Key ratios reveal a Price to Book Value of 1.91, an EV to EBIT of -1.48, and a ROE of -53.91%, indicating significant financial distress.
In comparison to peers, CervoMed's P/E ratio stands at -3.29, while Candel Therapeutics, Inc. has a P/E of -7.36 and Gaia, Inc. has a P/E of -21.71. These ratios highlight that CervoMed is not only underperforming relative to its peers but also facing severe challenges in generating positive earnings. The company's recent stock performance has significantly lagged behind the S&P 500, with a 1-year return of -67.27% compared to the index's 10.26%.