Is Talphera, Inc. overvalued or undervalued?

As of 8 November 2023, Talphera, Inc. has moved from a grade of risky to does not qualify, indicating significant concerns regarding its financial health. The company is currently assessed as overvalued, particularly given its negative P/E ratio due to losses, a Price to Book Value of 1.87, and an alarming ROCE of -206.75%. The EV to EBITDA ratio stands at -0.83, further highlighting the company's struggles in generating earnings relative to its enterprise value.
When compared to peers, Talphera's valuation metrics are concerning. For instance, Tonix Pharmaceuticals has a P/E of -3.669, while Iterum Therapeutics shows a P/E of -2.0489, both indicating worse performance in terms of profitability. Additionally, Talphera's stock has underperformed significantly against the S&P 500, with a year-to-date return of -16.05% compared to the index's 2.44%. This combination of negative financial ratios and poor stock performance suggests that Talphera, Inc. is indeed overvalued in the current market environment.