Is Helius Medical Technologies, Inc. overvalued or undervalued?

As of 12 August 2020, Helius Medical Technologies, Inc. has moved from a grade of risky to does not qualify, indicating significant concerns regarding its financial health. The company is currently considered overvalued, particularly given its negative financial ratios. Notably, the Price to Book Value stands at 0.45, while both the EV to EBIT and EV to EBITDA ratios are at 0.04, reflecting a lack of profitability. The Return on Equity (ROE) is alarmingly low at -1169.69%, which underscores the company's struggle to generate returns for shareholders.
In comparison to its peers, Helius Medical Technologies shows a stark contrast with companies like Seastar Medical Holding Corp. and BioRestorative Therapies, which also do not qualify but have less severe financial metrics. The overall peer comparison indicates that Helius is lagging significantly behind, with a valuation of -0.0109 for its EV to EBITDA ratio, compared to peers that are also in the negative range but not as extreme. Furthermore, the company's stock performance has been dismal, with a year-to-date return of -96.82%, starkly underperforming the S&P 500's 2.44% return in the same period.