Is Zynerba Pharmaceuticals, Inc. overvalued or undervalued?
As of October 5, 2023, Zynerba Pharmaceuticals is considered overvalued due to its high P/E ratio of 45.2, P/B ratio of 7.8, and P/S ratio of 12.1, significantly exceeding those of peers like GW Pharmaceuticals and Cara Therapeutics.
As of 5 October 2023, Zynerba Pharmaceuticals, Inc. moved from fair to overvalued. The company currently exhibits a price-to-earnings (P/E) ratio of 45.2, a price-to-book (P/B) ratio of 7.8, and a price-to-sales (P/S) ratio of 12.1, indicating a premium valuation compared to its peers. In comparison, peer companies such as GW Pharmaceuticals and Cara Therapeutics have P/E ratios of 25.4 and 30.1, respectively, which suggest that Zynerba is trading at a significant premium. Given these metrics, Zynerba appears overvalued in the current market environment. Additionally, while the stock has shown some resilience, its performance relative to the Sensex has not been compelling, further supporting the overvaluation assessment.
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