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. The company appears to be overvalued given its financial metrics, particularly with a Price to Book Value of 1.65 and an EV to Sales ratio of 16.56, which are significantly high for a loss-making entity. Additionally, the company has a negative ROCE of -148.11% and a negative ROE of -38.82%, indicating poor returns on capital and equity.
In comparison to peers, Tonix's valuation ratios are concerning; for instance, Aytu Biopharma, Inc. has a fair P/E ratio of 2.46, while Tonix's P/E is not applicable due to its loss-making status. Other risky peers like Biofrontera, Inc. and Impel Pharmaceuticals, Inc. also reflect negative valuation metrics. Notably, Tonix's stock has underperformed against the S&P 500 across multiple periods, including a -29.20% return over the past month compared to the S&P 500's 2.33%, reinforcing the perception of overvaluation.