Is Inotiv, Inc. overvalued or undervalued?

As of 10 February 2022, the valuation grade for Inotiv, Inc. has moved from fair to risky, indicating a deterioration in its financial standing. The company is currently overvalued, as evidenced by its Price to Book Value of 0.59, an EV to Sales ratio of 1.00, and a troubling ROE of -57.12%. In comparison, FONAR Corp., which is rated fair, has a P/E ratio of 8.9956 and an EV to EBITDA of 2.7084, highlighting the significant disparity in valuation metrics among peers.
Inotiv's performance has been notably poor, with a year-to-date return of -64.98% compared to the S&P 500's gain of 12.22%, and a staggering 3-year return of -93.17% against the S&P 500's 70.41%. This stark contrast reinforces the notion that Inotiv is not only struggling in terms of valuation but also underperforming significantly relative to broader market benchmarks.