Is BioNexus Gene Lab Corp. overvalued or undervalued?

As of 9 December 2022, the valuation grade for BioNexus Gene Lab Corp. moved from expensive to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued, given its negative valuation ratios and poor performance metrics. Key ratios include a Price to Book Value of 0.72, an EV to Sales ratio of 0.22, and a ROCE of -54.21%, all suggesting significant financial distress.
In comparison to peers, BioNexus Gene Lab Corp. has a less favorable EV to EBITDA of -0.95 compared to CervoMed, Inc. at -2.3987 and Team, Inc. at 9.7974, highlighting its weaker operational efficiency. Additionally, while the company has shown strong short-term returns, with a YTD return of 103.79% compared to the S&P 500's 12.22%, its long-term performance is concerning, with a 3Y return of -95.94% versus the S&P 500's 70.41%. This stark contrast reinforces the notion that the stock is currently overvalued.