Is KORU Medical Systems, Inc. overvalued or undervalued?

As of 4 August 2020, KORU Medical Systems, Inc. has moved from a valuation grade of very expensive to risky, indicating a significant shift in its perceived value. The company is currently considered overvalued given its financial metrics, including a price-to-book value of 9.34 and an EV to EBITDA ratio of -29.78, which suggests negative earnings before interest, taxes, depreciation, and amortization. Additionally, the return on capital employed (ROCE) stands at a concerning -69.30%, further highlighting the company's struggles.
In comparison to its peers, KORU Medical Systems, Inc. exhibits a less favorable valuation profile. For instance, Jin Medical International Ltd. has a more reasonable EV to EBITDA of -14.2435, while Bioventus, Inc. shows a significantly high P/E ratio of 327.4318, indicating a stark contrast in market expectations. The company's recent stock performance has outpaced the S&P 500 over the past week and month, with returns of 6.19% and 28.95%, respectively, but this does not mitigate the overall valuation concerns.