Is Timber Pharmaceuticals, Inc. overvalued or undervalued?

As of 15 October 2023, Timber Pharmaceuticals, Inc. has moved from fair to overvalued. The company currently exhibits a price-to-earnings ratio of 45.2, a price-to-book ratio of 7.8, and a debt-to-equity ratio of 1.5, which suggests a high valuation relative to its earnings and book value. In comparison, peers like Amgen, with a price-to-earnings ratio of 18.5, and Regeneron Pharmaceuticals, at 23.4, indicate that Timber is trading at a significant premium.
Given these ratios and the comparison to its peers, Timber Pharmaceuticals appears overvalued in the current market. The stock has underperformed against the Sensex, reinforcing the notion that its valuation may not be justified by its financial metrics.