Is IMAC Holdings, Inc. overvalued or undervalued?

As of 10 February 2025, the valuation grade for IMAC Holdings, Inc. has moved from risky to does not qualify, indicating a significant deterioration in its financial standing. The company is currently deemed overvalued given its negative price-to-book value of -0.02 and an EV to EBITDA ratio of 0.06, which suggests that it is not generating sufficient earnings relative to its enterprise value. Additionally, the return on capital employed (ROCE) is exceptionally high at 81.52%, but this is misleading due to the company's negative book value.
In comparison to its peers, IMAC Holdings, Inc. shows a stark contrast with GeneDx Holdings Corp., which has a P/E ratio of -63.58, and Aveanna Healthcare Holdings, Inc. with a P/E of 21.61, both of which are in a risky valuation category. The overall market performance has been dismal, with the stock down 97.59% over the past year compared to a 10.26% increase in the S&P 500. This further reinforces the conclusion that IMAC Holdings, Inc. is overvalued in its current state.