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 appears to be overvalued given its substantial negative performance metrics, including a Price to Book Value of 4.37, an EV to EBIT of -1.84, and an EV to EBITDA of -1.85. Comparatively, peers like G1 Therapeutics, Inc. and ADC Therapeutics SA show even worse EV to EBITDA ratios of -9.6487 and -4.7475, respectively, but Veru's metrics still suggest a concerning valuation.
The stock has underperformed significantly against the S&P 500, with a year-to-date return of -45.12% compared to the index's 12.22%. This trend continues over longer periods, with a 3-year return of -97.50% versus the S&P's 70.41%. Overall, the combination of poor financial ratios and substantial negative returns indicates that Veru, Inc. is overvalued in the current market context.