Is Sonnet BioTherapeutics Holdings, Inc. overvalued or undervalued?

As of 13 February 2025, the valuation grade for Sonnet BioTherapeutics Holdings, Inc. has moved from does not qualify to risky. The company is currently considered overvalued based on its financial metrics. Notable ratios include a price to book value of 3.96, an EV to EBIT of -0.14, and an EV to EBITDA of -0.15, all indicating significant financial distress and lack of profitability.
In comparison to its peers, Sonnet BioTherapeutics shows a stark contrast; for instance, Theseus Pharmaceuticals, Inc. has a P/E of -3.1720 and an EV to EBITDA of 0.3754, while Vaxart, Inc. also carries a risky valuation with an EV to EBITDA of -1.9155. The company's substantial negative return over the past year of -85.84% compared to the S&P 500's 10.26% further underscores its overvaluation and the challenges it faces in the current market environment.