Is Galmed Pharmaceuticals Ltd. overvalued or undervalued?

As of 6 November 2019, the valuation grade for Galmed Pharmaceuticals Ltd. moved from risky to does not qualify. The company is considered overvalued given its financial metrics, particularly with a Price to Book Value of 0.20 and an EV to EBITDA of 2.05, despite being a loss-making entity. The Return on Equity (ROE) stands at a concerning -36.74%, indicating significant inefficiencies in generating profits from equity.
In comparison to its peers, Galmed Pharmaceuticals Ltd. shows a less favorable position, with Avalo Therapeutics, Inc. having an EV to EBITDA of 1.48 and ABVC BioPharma, Inc. showing a much lower valuation with an EV to EBITDA of -21.96. The recent stock performance reflects a stark contrast to the S&P 500, with a year-to-date return of -45.14% compared to the index's 2.44%, reinforcing the notion that the company is overvalued in its current state.