Is Dolphin Medical overvalued or undervalued?

As of 12 November 2024, Dolphin Medical's valuation grade has moved from does not qualify to risky, indicating a significant deterioration in its financial standing. The company appears to be overvalued based on its current financial ratios, which include a PE ratio of -3.58, an EV to EBITDA of -4.38, and a Price to Book Value of 0.35. These figures suggest that the company is struggling to generate positive earnings and is not effectively utilizing its assets.
When compared to its peers, Dolphin Medical's financial metrics starkly contrast with those of Max Healthcare, which has a PE ratio of 100.29, and Apollo Hospitals, with a PE ratio of 69.03. This highlights the significant gap in valuation and operational performance within the healthcare services sector. Additionally, Dolphin Medical's recent stock performance has lagged behind the Sensex, with a 1-week return of -3.36%, further reinforcing the notion that the company is currently overvalued in the market.