Is InMed Pharmaceuticals, Inc. overvalued or undervalued?

As of 23 September 2022, the valuation grade for InMed Pharmaceuticals, Inc. moved from does not qualify to risky. The company is currently considered overvalued given its financial metrics and performance. Key ratios include a price to book value of 0.49, an EV to EBITDA of 0.11, and a negative ROE of -118.37%.
InMed's valuation is notably higher compared to peers such as Avalo Therapeutics, Inc., which has a PE ratio of -1.0508, and Plus Therapeutics, Inc., with an EV to EBITDA of -0.0248. These comparisons highlight that InMed's financial standing is weaker relative to its peers. Furthermore, the company's stock has significantly underperformed against the S&P 500, with a year-to-date return of -48.31% compared to the index's gain of 2.44%.