Is Sol-Gel Technologies Ltd. overvalued or undervalued?

As of 10 March 2023, the valuation grade for Sol-Gel Technologies Ltd. moved from fair to risky, indicating a shift towards a more negative outlook. The company appears to be overvalued given its financial metrics, particularly with a Price to Book Value of 1.00 and an EV to Sales ratio of 0.30, which suggest limited growth potential in relation to its market price. Additionally, the company's negative ROCE of -388.12% and ROE of -64.66% further highlight its struggles in generating returns for shareholders.
In comparison to its peers, Sol-Gel Technologies Ltd. has a significantly higher EV to EBITDA ratio of -11.1084 compared to Assembly Biosciences, Inc. at -6.6467 and Societal CDMO, Inc. at 18.7985, indicating that it is not performing well relative to its industry counterparts. The overall financial health and performance metrics suggest that the company is overvalued in the current market context. There is no available return data to compare against the S&P 500, but the lack of positive returns reinforces the concerns surrounding its valuation.