Is Arcadia Biosciences, Inc. overvalued or undervalued?

As of 30 March 2022, the valuation grade for Arcadia Biosciences, Inc. moved from fair to risky, indicating a shift towards a more negative outlook. The company appears to be overvalued given its P/E ratio of 7, which is significantly lower than the industry average, and a PEG ratio of 0.07, suggesting limited growth prospects. Additionally, the EV to EBITDA ratio of -0.76 further highlights the company's financial struggles.
In comparison to peers, Arcadia's valuation metrics are concerning; for instance, Oil-Dri Corp. of America has a P/E ratio of 25.16, showcasing a stark contrast in valuation. Other risky peers, such as LSB Industries, Inc. and Bioceres Crop Solutions Corp., also reflect negative EV to EBITDA ratios, indicating that Arcadia is not alone in its challenges but still stands out with its particularly low ratios. Over the past year, while Arcadia's stock returned 26.38%, it underperformed against the S&P 500's 17.14%, reinforcing the notion that the stock may be overvalued in the current market context.