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 a significant deterioration in its financial standing. The company is overvalued given its negative valuation ratios, including a Price to Book Value of -0.73, an EV to EBIT of -0.09, and an EV to EBITDA of -0.09, which suggest that the company is struggling financially compared to its peers.
In comparison, KALA BIO, Inc. has a P/E ratio of -2.7752 and Entera Bio Ltd. shows a P/E of -8.6141, both reflecting similarly poor financial health. Palatin's stock has underperformed significantly against the S&P 500, with a year-to-date return of -84.68% compared to the S&P 500's 12.22%, reinforcing the notion that the stock is not a viable investment at its current valuation.