Is Gaia, Inc. overvalued or undervalued?

As of 6 March 2023, Gaia, Inc. has moved from an expensive to a risky valuation grade, indicating increased uncertainty about its financial health. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 1.42 and an EV to EBITDA ratio of 9.11, which suggests that investors are paying a premium relative to its earnings potential. Additionally, the EV to Sales ratio stands at 1.26, further supporting the notion of overvaluation in comparison to its peers.
In comparison to its industry peers, Gaia, Inc. has a significantly lower EV to EBITDA ratio than PaySign, Inc. at 14.4511 and FONAR Corp. at 2.7084, indicating that it is not generating value effectively relative to its market price. Notably, while Gaia has shown strong returns year-to-date at 34.52%, outperforming the S&P 500's 12.22%, its long-term performance has been poor, with a 5-year return of -42.26% compared to the S&P 500's 96.61%. This discrepancy highlights the risks associated with investing in Gaia, Inc. despite its recent short-term gains.