Is EBET, Inc. overvalued or undervalued?

As of 8 July 2024, the valuation grade for EBET, Inc. has moved from risky to does not qualify, indicating a significant deterioration in its financial standing. The company is overvalued given its current metrics, particularly with a P/E ratio of -0.0004 and an EV to EBITDA ratio of -2.98, which suggest severe financial distress. Additionally, the EV to Sales ratio of 2.19 further highlights the disconnect between its valuation and operational performance.
In comparison to its peers, Hanryu Holdings, Inc. has a P/E ratio of -3.3507 and an EV to EBITDA of -4.9090, while Tabula Rasa Healthcare, Inc. shows a P/E of -6.1273 and an EV to EBITDA of -30.7269, both indicating that EBET, Inc. is not only underperforming but also facing more significant challenges than its peers. Over the past year, EBET, Inc. has experienced a staggering return of -98.07%, contrasting sharply with the S&P 500's gain of 17.14%, reinforcing the notion that the stock is overvalued.