Is CG Oncology, Inc. overvalued or undervalued?

As of 13 May 2025, the valuation grade for CG Oncology, Inc. has moved from risky to does not qualify, indicating a significant deterioration in its financial standing. The company is currently classified as overvalued, given its high Price to Book Value of 2.91 and extremely negative ratios such as EV to EBIT and EV to EBITDA at -11.89. Additionally, the Return on Capital Employed (ROCE) is alarmingly low at -691.63%, which raises concerns about the company's operational efficiency.
In comparison with peers, CG Oncology, Inc. shows a stark contrast, with its EV to EBITDA ratio of -11.4449 compared to the industry average. Notably, its performance has lagged behind the S&P 500, with a year-to-date return of -10.53% versus the index's 2.44%. Given these metrics, it is clear that CG Oncology, Inc. is not only overvalued but also struggling significantly in its operational performance.