Is Inotiv, Inc. overvalued or undervalued?

As of 10 February 2022, the valuation grade for Inotiv, Inc. has moved from expensive to risky, indicating a significant shift in its perceived value. The company appears to be overvalued given its current financial metrics, including a Price to Book Value of 0.59 and an EV to Sales ratio of 1.00, which suggest that the market may not be accurately reflecting its underlying value. Additionally, the negative ROCE of -9.57% and ROE of -57.12% further underscore the company's struggles.
In comparison to its peers, Inotiv's valuation is notably unfavorable, with its EV to EBITDA ratio at 73.62, while FONAR Corp., which is rated attractive, has a much lower EV to EBITDA of 2.1640. Similarly, Absci Corp. is also classified as risky with an EV to EBITDA of -2.0039. The stock has underperformed relative to the S&P 500, particularly over the year-to-date period, where it has declined by 51.21% compared to a modest gain of 2.44% for the index. Overall, Inotiv, Inc. is assessed as overvalued based on its financial ratios and peer comparisons.