Is Palatin Technologies, Inc. overvalued or undervalued?

As of 13 February 2025, the valuation grade for Palatin Technologies, Inc. has moved from risky to does not qualify, indicating significant concerns about its financial health. The company is currently overvalued, as evidenced by its negative Price to Book Value of -0.73 and an EV to Sales ratio of 2.32, which is high given its loss-making status. Additionally, the EV to EBIT and EV to EBITDA ratios are both -0.09, reflecting the company's inability to generate positive earnings.
In comparison to its peers, Palatin's valuation metrics are considerably weaker. For instance, Entera Bio Ltd. has a much lower EV to EBITDA ratio of -7.4257, while NRX Pharmaceuticals, Inc. shows an EV to Sales ratio of -3.1588, both indicating more favorable valuations. The company's stock has underperformed significantly, with a year-to-date return of -86.49% compared to a modest 2.44% return for the S&P 500, further reinforcing the notion that Palatin Technologies is overvalued in its current state.