Is Liquidia Corp. overvalued or undervalued?

As of 13 October 2023, Liquidia Corp. has moved from a valuation grade of "does not qualify" to "risky." The company is currently considered overvalued. Key ratios indicate significant financial distress, with a P/E ratio of NA due to losses, a Price to Book Value of 31.19, and an EV to EBITDA of -11.80. The negative ROE of -271.66% further underscores the company's challenges.
In comparison to peers, Liquidia Corp. has a less favorable position, with its EV to EBITDA ratio of -11.80 compared to Procaps Group SA, which is rated "very attractive" with an EV to EBITDA of 55.70. Other risky peers like Harrow, Inc. show an EV to EBITDA of 60.41, highlighting Liquidia's struggles. Despite a YTD return of 12.76%, which outperformed the S&P 500's 2.44%, the overall financial metrics suggest that the stock is overvalued in the current market context.