Is scPharmaceuticals, Inc. overvalued or undervalued?

As of 10 May 2023, the valuation grade for scPharmaceuticals, Inc. has moved from does not qualify to risky, indicating increased concerns regarding its financial health. The company is currently considered overvalued, primarily due to its negative financial ratios, including a Price to Book Value of -43.25 and an EV to EBITDA of -3.24. Additionally, the company’s P/E ratio is not applicable as it is loss-making, further complicating its valuation metrics.
In comparison to its peers, scPharmaceuticals shows significant underperformance; for instance, Fulcrum Therapeutics, Inc. has a P/E ratio of 223.49, while Vanda Pharmaceuticals, Inc. has an EV to EBITDA of 1.11, highlighting the disparity in valuation. The company's recent stock performance has also been lackluster, with a 1-year return of -4.96%, compared to the S&P 500's 10.26% return, reinforcing the notion that scPharmaceuticals is not a favorable investment at this time.