Is Pyxis Oncology, Inc. overvalued or undervalued?

As of 15 May 2025, the valuation grade for Pyxis Oncology, Inc. has moved from risky to does not qualify, indicating a significant deterioration in its investment appeal. The company appears to be overvalued given its current financial metrics, including a Price to Book Value of 0.81 and an EV to EBITDA of 0.26. Notably, the Return on Capital Employed (ROCE) is exceptionally high at 3742.04%, but this is misleading due to the negative Return on Equity (ROE) of -72.03%, reflecting the company's loss-making status.
In comparison to its peers, Pyxis Oncology's valuation metrics are concerning. For instance, Eton Pharmaceuticals, Inc. has a P/E ratio of -92.8956 and an EV to EBITDA of 377.6356, while Ocugen, Inc. shows a P/E of -5.5401 and an EV to EBITDA of -5.6869. These comparisons highlight that Pyxis Oncology's financial ratios do not position it favorably within its industry. Additionally, the company's stock has significantly underperformed against the S&P 500, with a year-to-date return of -22.44% compared to the S&P 500's 2.44%. Overall, the evidence suggests that Pyxis Oncology, Inc. is overvalued at its current price of 1.21.