Is Oramed Pharmaceuticals, Inc. overvalued or undervalued?

As of 15 May 2025, the valuation grade for Oramed Pharmaceuticals, Inc. has moved from does not qualify to risky, indicating increased concerns about its financial health. The company is currently considered overvalued given its negative performance metrics, including a Price to Book Value of 0.64 and an EV to EBITDA ratio of 2.81. Additionally, the Return on Equity (ROE) stands at a concerning -20.08%, highlighting ongoing losses.
In comparison to its peers, Oramed's valuation metrics are less favorable, with Talaris Therapeutics, Inc. showing a more negative P/E of -5.6255 and Esperion Therapeutics, Inc. having an EV to EBITDA of -17.4452, both of which reflect similar challenges in the industry. The stock has underperformed relative to the S&P 500, with a year-to-date return of -12.81% compared to the index's 2.44%. Overall, the combination of negative ratios and poor stock performance suggests that Oramed Pharmaceuticals is overvalued in the current market environment.