Is Omeros Corp. overvalued or undervalued?

As of 9 November 2022, Omeros Corp. moved from a grade of risky to does not qualify, indicating a significant deterioration in its valuation outlook. The company is currently overvalued, as evidenced by its negative Price to Book Value of -1.03 and an EV to EBIT ratio of -3.46, which highlight its financial struggles. Additionally, the Return on Capital Employed (ROCE) stands at a troubling -120.45%, further underscoring the company's challenges in generating returns.
In comparison to its peers, Omeros Corp. significantly lags behind Rigel Pharmaceuticals, which has a P/E ratio of 9.21 and an EV to EBITDA of 7.02, indicating a much healthier valuation. Other peers like Astria Therapeutics and Merrimack Pharmaceuticals also show negative metrics, but none approach the extreme negative ratios seen with Omeros. The company's recent stock performance, with a year-to-date decline of 67.71% compared to a modest 2.44% gain in the S&P 500, reinforces the notion that Omeros is not only struggling but also overvalued in the current market context.