Is Harrow, Inc. overvalued or undervalued?

As of 9 November 2021, the valuation grade for Harrow, Inc. moved from fair to risky, indicating a shift towards a more negative outlook. The company appears to be overvalued, particularly given its significant losses reflected in the P/E ratio of NA and a troubling ROE of -37.99%. Key ratios such as the Price to Book Value at 19.24 and the EV to EBITDA at 58.98 further underscore the valuation concerns.
In comparison to its peers, Harrow, Inc. has a notably high EV to EBIT of 260.04, while Travere Therapeutics, Inc. and Tarsus Pharmaceuticals, Inc. exhibit lower EV to EBITDA ratios of -16.22 and -21.71, respectively. Despite recent strong stock performance, with a 3-year return of 404.78% compared to the S&P 500's 70.41%, the underlying financial metrics suggest that Harrow, Inc. is not positioned favorably in the current market.