Is Ocuphire Pharma, Inc. overvalued or undervalued?

As of 8 March 2024, the valuation grade for Ocuphire Pharma, Inc. has moved from very attractive to risky, indicating a significant deterioration in its financial outlook. The company is currently considered overvalued, particularly given its negative P/E ratio and a price-to-book value of 12.23. The EV to EBITDA and EV to EBIT ratios are both at -1.08, reflecting a troubling financial position, while the ROE stands at an alarming -660.22%.
In comparison to its peers, Ocuphire Pharma's valuation metrics are concerning. For instance, Chimerix, Inc. has a P/E ratio of -8.69, and Capricor Therapeutics, Inc. shows a P/E of -10.12, both indicating a similar risk profile. In contrast, CytomX Therapeutics, Inc. is classified as attractive with a P/E of 9.01, highlighting the stark difference in valuation among industry players. Furthermore, Ocuphire's stock has underperformed significantly against the S&P 500, with a year-to-date decline of 23.85% compared to a modest gain of 2.44% for the index, reinforcing the notion of overvaluation.