Is Veru, Inc. overvalued or undervalued?

As of 9 February 2022, the valuation grade for Veru, Inc. has moved from fair to risky, indicating a significant deterioration in its financial outlook. The company is currently considered overvalued, particularly given its troubling financial ratios, including a Price to Book Value of 4.37 and an EV to Sales ratio of 6.85. Notably, Veru's ROCE stands at an alarming -2222.48%, reflecting severe operational inefficiencies.
In comparison to its peers, Veru's performance appears particularly weak. For instance, G1 Therapeutics, Inc. has a P/E ratio of -8.4258, while ADC Therapeutics SA shows a P/E of -2.1005, both of which suggest more favorable valuations relative to Veru's metrics. The company's recent stock performance has been lackluster, with a year-to-date return of -4.69%, contrasting sharply with the S&P 500's 2.44% gain during the same period. This further reinforces the notion that Veru, Inc. is currently overvalued in the market.