Is Salarius Pharmaceuticals, Inc. overvalued or undervalued?

As of 5 August 2022, the valuation grade for Salarius Pharmaceuticals, Inc. moved from risky to does not qualify, indicating a significant downgrade in its investment appeal. The company is assessed as overvalued given its current financial metrics, particularly with a Price to Book Value of 1.54 and an EV to EBIT of just 0.03. Notably, the Return on Capital Employed (ROCE) is extraordinarily high at 349.78%, but this is overshadowed by a staggering Return on Equity (ROE) of -557.00%, reflecting severe losses.
In comparison to its peers, Salarius Pharmaceuticals shows a stark contrast with companies like OpGen, Inc. and BTC Digital Ltd., which have P/E ratios of -2.4932 and -9.9632, respectively, indicating that they are also struggling. The lack of profitability is evident across the board, as reflected in the negative EV to EBITDA ratios for its peers. The company's stock has performed poorly over the past year, down 58.33%, while the S&P 500 has gained 10.26%, further reinforcing the notion that Salarius is overvalued in its current state.