Is INVO Fertility, Inc. overvalued or undervalued?

As of 15 May 2023, the valuation grade for INVO Fertility, Inc. changed from does not qualify to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued, as evidenced by its P/E ratio of -0.4475 and EV to EBITDA of -1.1221, both of which suggest significant challenges in profitability and valuation compared to its peers. In the Pharmaceuticals & Biotechnology industry, these ratios are concerning, especially when compared to industry benchmarks.
The peer comparison highlights that INVO Fertility, Inc. has a negative P/E ratio, while other companies in the sector may have more favorable metrics. For instance, the absence of a PEG ratio indicates a lack of growth expectations, further reinforcing the notion of overvaluation. Additionally, the company's stock has significantly underperformed against the S&P 500, with a year-to-date return of -97.01% compared to the index's 12.22%, reflecting a troubling trend for investors.