Is Deep Medicine Acquisition Corp. overvalued or undervalued?

As of 10 May 2024, the valuation grade for Deep Medicine Acquisition Corp. has moved from does not qualify to risky. This indicates a significant shift in perception, although the company remains in a precarious financial position. Based on the analysis, the company is currently overvalued. Key ratios include a Price to Book Value of -1.36, an EV to EBIT of -4.18, and an EV to EBITDA of -5.76, all suggesting a lack of profitability and negative capital employed.
In comparison to peers, Deep Medicine Acquisition Corp. has a P/E ratio of -0.5165, while two (United States) stands out with an attractive P/E of -93.0297, and ExcelFin Acquisition Corp. does not qualify with a P/E of -51.5940. The stark contrast in these ratios highlights the company's challenges relative to its peers. Additionally, while Deep Medicine Acquisition Corp. has shown a remarkable stock return of 3002.11% over the past week, this performance is not sustainable given the underlying financial metrics, reinforcing the conclusion that the company is overvalued.