Is Spruce Biosciences, Inc. overvalued or undervalued?

As of 15 May 2023, the valuation grade for Spruce Biosciences, Inc. has moved from does not qualify to risky, indicating a significant downgrade in its financial standing. The company appears to be overvalued given its current metrics, with a Price to Book Value of 0.18 and an EV to EBITDA ratio of 0.37, both of which suggest that the stock is not reflecting its underlying value. Additionally, the Return on Capital Employed (ROCE) stands at an impressive 670.25%, but this is overshadowed by a negative Return on Equity (ROE) of -361.86%, highlighting the company's struggles.
When compared to its peers, such as Immunome, Inc. with an EV to EBITDA of -2.5424 and CARA Therapeutics, Inc. with an EV to EBITDA of -8.0086, Spruce Biosciences, Inc. does not demonstrate a competitive edge. The company's stock has underperformed significantly, with a year-to-date return of -83.33% compared to the S&P 500's modest gain of 2.44%. Overall, the combination of poor financial ratios and the company's recent performance suggests that it is overvalued in the current market.