Is Harrow, Inc. overvalued or undervalued?

As of 9 November 2021, Harrow, Inc. has moved from a fair to a risky valuation grade, indicating a significant shift in its perceived financial health. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 19.24 and an EV to EBITDA ratio of 58.98, which are substantially higher than industry norms. Additionally, the company's ROE stands at a concerning -37.99%, reflecting ongoing losses that further complicate its valuation.
In comparison with peers, Harrow, Inc. shows a stark contrast to PetIQ, Inc., which has a fair valuation with a P/E ratio of 27.10 and an EV to EBITDA of 11.36, highlighting the disparity in financial performance. Other peers like Tarsus Pharmaceuticals, Inc. and Travere Therapeutics, Inc. also reflect risky valuations with negative P/E ratios, yet they do not reach the extremes seen in Harrow. Overall, the company's recent stock performance has outpaced the S&P 500 over the long term, but the current valuation metrics suggest that Harrow, Inc. is overvalued in the present market context.