Is Digital Health Acquisition Corp. overvalued or undervalued?

As of 23 September 2024, the valuation grade for Digital Health Acquisition Corp. has moved from does not qualify to risky, indicating a significant shift in its perceived financial health. The company is currently assessed as overvalued based on its financial ratios and peer comparisons. Key ratios include a Price to Book Value of 3.75, an EV to EBIT of -7.84, and an ROE of -57.84%, all of which suggest poor performance and a lack of profitability.
In comparison to its peers, Digital Health Acquisition Corp. shows a less favorable position, with its EV to EBITDA ratio of -7.86 being significantly worse than Worldwide Webb Acquisition Corp., which has an EV to EBITDA of -2.5327, and ClimateRock, which has a PE ratio of -55.7632. Furthermore, the company's stock has underperformed considerably over the past year, with a return of -90.32% compared to the S&P 500's 10.26%, reinforcing the notion that it is overvalued in the current market context.