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, indicating a shift in perception regarding its financial health. The company appears to be overvalued, given its negative P/E ratio and poor return metrics. Key ratios include a Price to Book Value of 0.49, an EV to EBIT of 0.10, and an EV to EBITDA of 0.11, all suggesting that the company is struggling to generate positive returns.
InMed Pharmaceuticals is compared to peers such as Plus Therapeutics, Inc., which has a significantly worse EV to EBITDA ratio of -3.3801, indicating that InMed is somewhat better positioned despite both being classified as risky. However, the company's recent stock performance has been dismal, with a year-to-date return of -50.21% compared to the S&P 500's positive return of 12.22%, reinforcing the notion that the stock is overvalued in the current market context.