Is Inhibikase Therapeutics, Inc. overvalued or undervalued?

As of 12 August 2022, the valuation grade for Inhibikase Therapeutics, Inc. moved from risky to does not qualify, indicating a significant downgrade in its investment appeal. The company is currently considered overvalued, particularly given its negative financial metrics. The P/E ratio is not applicable due to the company being loss-making, while the Price to Book Value stands at 1.70. Additionally, the EV to EBIT and EV to EBITDA ratios are both at -1.33, reflecting severe operational challenges.
In comparison to its peers, Inhibikase Therapeutics, Inc. has a valuation of -3.4299, while Pulmatrix, Inc. is rated risky with a valuation of -2.4446. Other peers like Lexaria Bioscience Corp. also do not qualify, with a valuation of -2.0847. The company's return performance has been poor, with a year-to-date decline of 48.92%, contrasting sharply with the S&P 500's modest gain of 2.44% over the same period. Overall, these factors suggest that Inhibikase Therapeutics is not only overvalued but also faces significant operational and financial hurdles.