Is IGC Pharma, Inc. overvalued or undervalued?

As of 10 August 2023, IGC Pharma, Inc. has moved from a grade of does not qualify to risky. The company is overvalued based on its current financial metrics. Key ratios include a Price to Book Value of 3.90, an EV to EBIT of -2.95, and an EV to EBITDA of -3.21, indicating significant operational challenges and a lack of profitability. In comparison, peers such as Equillium, Inc. have an EV to EBITDA of -4.94, and OncoCyte Corp. stands at -2.13, suggesting that IGC Pharma's valuation is less favorable relative to its peers.
Despite a strong year-to-date return of 22.59% compared to the S&P 500's 12.22%, the overall long-term performance remains concerning, with a 5-year return of -65.39% versus the S&P 500's 96.61%. This discrepancy highlights the risks associated with investing in IGC Pharma, reinforcing the conclusion that the stock is overvalued.