Is KORU Medical Systems, Inc. overvalued or undervalued?

As of 4 August 2020, KORU Medical Systems, Inc. has moved from a fair to a risky valuation grade. The company appears to be overvalued, particularly given its significant negative financial metrics. Key ratios include a Price to Book Value of 9.34, an EV to EBIT of -25.23, and an EV to EBITDA of -29.78, all indicating financial distress and lack of profitability.
In comparison to peers, KORU Medical Systems has a notably low EV to EBITDA ratio of -48.96, while Bioventus, Inc. shows a much healthier EV to EBITDA of 9.72, highlighting the disparity in valuation within the sector. Additionally, Semler Scientific, Inc. has a more attractive P/E ratio of 32.26, further underscoring KORU's challenging position. Despite a strong 1-year return of 51.31% compared to the S&P 500's 17.14%, the long-term outlook remains concerning, as KORU has underperformed over 3 years and 5 years, with returns of 60.96% and -47.05% respectively, against the S&P's 70.41% and 96.61%.