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. The company appears to be overvalued given its financial metrics, particularly with a Price to Book Value of 0.64 and an EV to EBITDA ratio of 2.81, which are concerning in the context of its negative returns. Additionally, the ROE stands at -20.08%, indicating significant inefficiencies in generating profit from equity.
In comparison to its peers, Esperion Therapeutics, Inc. shows a more severe valuation with an EV to EBITDA of -28.9150, while Protalix Biotherapeutics, Inc. is considered attractive with a P/E ratio of 20.0760. The stock has underperformed against the S&P 500 over the longer term, with a 3-year return of -68.23% compared to the S&P 500's 70.41%, reinforcing the notion that Oramed Pharmaceuticals is currently overvalued.