Is Ovid Therapeutics, Inc. overvalued or undervalued?

As of 13 August 2025, the valuation grade for Ovid Therapeutics, Inc. has moved from does not qualify to risky, indicating increased concerns about the company's financial health. Based on the available metrics, Ovid appears to be overvalued given its negative performance indicators, including a price-to-book value of 0.38 and an EV to EBITDA ratio of 0.34. The company also has a return on equity (ROE) of -33.92%, which further underscores its financial struggles.
When compared to peers, Ovid's valuation ratios are less favorable; for instance, KalVista Pharmaceuticals, Inc. has a more negative EV to EBITDA of -3.6594, while Fulcrum Therapeutics, Inc. does not qualify for valuation metrics. Additionally, Ovid's stock has underperformed relative to the S&P 500 over the long term, with a 5-year return of -81.76% compared to the S&P's 96.61%. This performance reinforces the notion that Ovid is currently overvalued in the market.