Is DMK Pharmaceuticals Corp. overvalued or undervalued?

As of 8 July 2024, the valuation grade for DMK Pharmaceuticals Corp. has moved from risky to does not qualify, indicating significant concerns regarding its financial health. The company appears to be overvalued, particularly given its current P/E ratio of 0.00 and negative EV to Sales ratio of -1.82, which suggest that the market does not assign any value to its earnings or sales. Additionally, the EV to EBITDA ratio stands at 0.36, further highlighting the lack of investor confidence in the company's profitability.
In comparison to peers, DMK Pharmaceuticals Corp. shows a stark contrast with Inhibikase Therapeutics, which has an EV to EBITDA of -0.79, and Aileron Therapeutics, which has an EV to EBITDA of -1.05, both indicating challenges in their valuations as well. Notably, DMK Pharmaceuticals has experienced a 100% decline in stock value over the past year, while the S&P 500 has returned 17.14%, reinforcing the notion that DMK is not performing well relative to broader market trends.