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 a more cautious outlook. The company appears to be overvalued given its negative valuation ratios, including a Price to Book Value of -43.25, an EV to EBIT of -3.23, and an EV to EBITDA of -3.24. Compared to peers, scPharmaceuticals has a worse EV to EBITDA ratio than Lexicon Pharmaceuticals, Inc. at -2.8670 and Fulcrum Therapeutics, Inc. at -2.2319, both of which also carry a risky valuation grade.
In terms of stock performance, scPharmaceuticals has shown a year-to-date return of 58.76%, significantly outperforming the S&P 500's 12.22% during the same period, though it lags behind in longer-term comparisons. Overall, the combination of negative valuation metrics and the risky classification suggests that scPharmaceuticals is overvalued in the current market context.