Is Journey Medical Corp. overvalued or undervalued?

As of 12 November 2024, Journey Medical Corp. has moved from a fair to a risky valuation grade. The company is currently considered overvalued, given its significant negative financial metrics. Key ratios include a Price to Book Value of 7.99, an EV to EBIT of -15.37, and an EV to EBITDA of -22.82, indicating substantial losses and a lack of profitability.
In comparison to its peers, Journey Medical Corp. shows a stark contrast, with Eledon Pharmaceuticals, Inc. and Fortress Biotech, Inc. both exhibiting less severe negative EV to EBITDA ratios of -0.5647 and -0.2586, respectively. The company's return performance has been notable, with a year-to-date return of 63.17%, significantly outperforming the S&P 500's 2.44%, though this does not mitigate the underlying valuation concerns.