Is Tonix Pharmaceuticals Holding Corp. overvalued or undervalued?

As of 9 November 2023, the valuation grade for Tonix Pharmaceuticals Holding Corp. has moved from does not qualify to risky, indicating a significant shift in its assessment. The company appears to be overvalued based on its current metrics, with a price-to-book value of 1.65, an EV to EBIT ratio of -2.29, and an EV to EBITDA ratio of -2.38, which are concerning figures for potential investors.
In comparison to its peers, Tonix's valuation metrics are notably worse; for instance, Aytu Biopharma, Inc. has a P/E ratio of 2.14 and an EV to EBITDA of 2.21, positioning it as attractive. Other peers like RenovoRx, Inc. and Iterum Therapeutics Plc also show negative EV to EBITDA ratios but are not as severely negative as Tonix's. Furthermore, Tonix's recent stock performance has significantly lagged behind the S&P 500, with a one-year return of -74.78% compared to the S&P 500's 10.26%. This combination of factors suggests that Tonix Pharmaceuticals is currently overvalued in the market.