Is Trevena, Inc. overvalued or undervalued?

As of 8 August 2024, Trevena, Inc. has moved from a grade of risky to does not qualify, indicating a significant deterioration in its valuation outlook. The company is currently overvalued, given its negative financial ratios, including a price-to-book value of -0.04 and an EV to EBITDA ratio of -0.67. These figures highlight the company's struggles, particularly as it operates at a loss and has negative returns on capital employed and equity.
In comparison to its peers, Trevena's valuation metrics are concerning. For instance, Tonix Pharmaceuticals has a P/E ratio of -3.67 and an EV to EBITDA of -1.80, while Neurosense Therapeutics shows an EV to EBITDA of -5.48, both indicating similar challenges within the sector. Furthermore, Trevena's stock has underperformed significantly, with a year-to-date decline of 26.67% compared to a modest gain of 2.44% for the S&P 500, reinforcing the notion that the company is not only overvalued but also struggling to generate positive returns for its investors.