Is Seelos Therapeutics, Inc. overvalued or undervalued?

As of 15 April 2025, the valuation grade for Seelos Therapeutics, 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 metrics, particularly with a P/E ratio of 0.00 and an EV to EBITDA of -0.33, which suggests a lack of profitability and negative enterprise value relative to earnings. Additionally, the ROE stands at an exceptionally high 106.13%, but this is misleading due to the negative capital employed, further complicating the valuation picture.
In comparison to its peers, Seelos Therapeutics is underperforming, with Pieris Pharmaceuticals showing a P/E of -25.1964 and Coeptis Therapeutics at -4.6862, indicating that these companies are also struggling but at different levels. The stock has experienced a dramatic decline, with a year-to-date return of -100%, contrasting sharply with the S&P 500's positive return of 12.22% during the same period, reinforcing the notion that Seelos is not a viable investment at this time.