Is Ocuphire Pharma, Inc. overvalued or undervalued?

As of 8 March 2024, the valuation grade for Ocuphire Pharma, Inc. has moved from attractive to risky, indicating a shift in perception regarding its financial health and future prospects. The company appears to be overvalued based on its current metrics, particularly with a Price to Book Value of 12.23 and an EV to Sales ratio of 2.86, which suggest that investors are paying a premium for the stock despite its negative earnings. Additionally, the company's ROE stands at a staggering -660.22%, highlighting significant financial distress.
In comparison to its peers, Ocuphire Pharma, Inc. has a worse EV to EBITDA ratio of -1.08, while CytomX Therapeutics, Inc., which is rated very attractive, boasts an EV to EBITDA of 4.6280. Other risky peers like Aquestive Therapeutics, Inc. show even more concerning metrics with an EV to EBITDA of -12.8252. Despite recent stock performance where Ocuphire outperformed the S&P 500 in the 1-week and 1-month periods, the long-term returns are troubling, with a 5-year decline of -83.87% compared to the S&P 500's gain of 96.61%. This further reinforces the notion that Ocuphire is currently overvalued.