Is SELLAS Life Sciences Group, Inc. overvalued or undervalued?

As of 11 May 2023, the valuation grade for SELLAS Life Sciences Group, Inc. moved from risky to does not qualify, indicating a significant downgrade in its investment appeal. The company appears to be overvalued given its financial metrics, with a Price to Book Value of 5.79 and a Return on Equity (ROE) of -97.73%. Additionally, the EV to EBITDA and EV to EBIT ratios are both negative at -4.75, reflecting the company's loss-making status.
In comparison to peers, SELLAS Life Sciences Group, Inc. has a worse EV to EBITDA ratio than Rezolute, Inc. at -3.4613 and Assembly Biosciences, Inc. at -0.8977, both of which are also categorized as risky. The company's recent stock performance shows a 64.42% year-to-date return, which outperforms the S&P 500's 2.44%, yet this does not mitigate the overall valuation concerns. Therefore, based on the analysis, SELLAS Life Sciences Group, Inc. is considered overvalued.