Is Onconetix, Inc. overvalued or undervalued?

As of 29 August 2024, the valuation grade for Onconetix, Inc. has moved from does not qualify to risky, indicating a significant shift in its perceived investment quality. The company appears to be overvalued given its negative P/E ratio of -0.4976 and an EV to EBITDA ratio of -1.7044, which suggest that the market is pricing the stock unfavorably compared to its earnings potential. Additionally, the lack of a PEG ratio indicates that growth expectations may not justify the current valuation.
In comparison to peers, Onconetix, Inc. is underperforming, especially when contrasted with the broader industry metrics. For instance, while Onconetix has a negative P/E, other companies in the pharmaceuticals and biotechnology sector typically exhibit positive valuations. The recent stock performance further underscores this valuation concern, as Onconetix has seen a staggering YTD return of -94.4% compared to a 12.22% gain in the S&P 500, highlighting its significant underperformance in the market.