Is Ensysce Biosciences, Inc. overvalued or undervalued?

As of 16 August 2021, the valuation grade for Ensysce Biosciences, Inc. moved from expensive to risky, indicating a shift in perception towards the company's financial health. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 1.85 and negative ratios for EV to EBIT and EV to EBITDA at -0.41. Additionally, the Return on Capital Employed (ROCE) and Return on Equity (ROE) are significantly negative at -685.47% and -224.12%, respectively, which further underscores the company's challenges.
In comparison to its peer, ContraFect Corp., which has a positive EV to EBITDA of 0.1574, Ensysce's negative ratios highlight its underperformance in the industry. The overall valuation suggests that Ensysce is not only struggling financially but also lacks the metrics to justify its current price, reinforcing the notion that it is overvalued. While specific return data is unavailable, the lack of positive returns relative to the S&P 500 may indicate further challenges ahead for the stock.