Is KALA BIO, Inc. overvalued or undervalued?

As of 4 August 2023, KALA BIO, Inc. has moved from a valuation grade of risky to does not qualify, indicating a significant deterioration in its investment appeal. The company is currently overvalued, as evidenced by its Price to Book Value of 4.68, a negative EV to EBITDA of -0.40, and an alarming ROE of -617.36%. These figures suggest that the company is struggling financially and is not generating positive returns for its shareholders.
In comparison to its peers, KALA BIO, Inc. has a less favorable position, with Regulus Therapeutics, Inc. showing a P/E ratio of -11.9462 and an EV to EBITDA of -9.7830, while Cumberland Pharmaceuticals, Inc. is rated risky with a P/E of -21.9132. The stark differences in these ratios highlight KALA's relative weakness in the market. Furthermore, KALA BIO's stock has significantly underperformed against the S&P 500, with a year-to-date return of -42.07% compared to the index's 2.44%.