Is Checkpoint Therapeutics, Inc. overvalued or undervalued?

As of 6 May 2021, the valuation grade for Checkpoint Therapeutics, Inc. moved from risky to does not qualify, indicating a significant downgrade in its investment appeal. The company is currently considered overvalued given its financial metrics, including a Price to Book Value of 22.75 and an EV to Sales ratio of 337.66, which are substantially higher than typical industry benchmarks. Additionally, the negative ROE of -345.95% and negative ROCE due to capital employed further underscore the company's financial challenges.
In comparison with peers, Checkpoint Therapeutics shows a stark contrast to Eledon Pharmaceuticals, which has a P/E of -1.7549 and an EV to EBITDA of -0.5647, and Journey Medical Corp., which has a P/E of -15.5915 and an EV to EBITDA of -19.5570. These comparisons highlight how Checkpoint's valuation metrics are out of sync with its industry peers. Despite a strong recent stock performance, with a year-to-date return of 33.12% compared to the S&P 500's 2.44%, the underlying financial ratios suggest that the company's current valuation is not justified.