Is Lifecore Biomedical, Inc. overvalued or undervalued?

As of 2 January 2025, Lifecore Biomedical, Inc. has moved from a fair to a risky valuation grade. The company appears to be overvalued given its high Price to Book Value of 5.35 and negative EV to EBIT and EV to EBITDA ratios of -30.78 and -81.49, respectively. Additionally, the company's ROCE stands at -7.31% and ROE at -89.08%, indicating significant financial distress.
In comparison to its peers, Lifecore Biomedical's EV to EBITDA ratio of -96.8085 is notably worse than scPharmaceuticals, Inc. at -4.6432 and Vanda Pharmaceuticals, Inc. at 0.5601. This suggests that Lifecore is underperforming relative to its industry counterparts. Despite a strong 1-year stock return of 52.50% compared to the S&P 500's 17.14%, the long-term performance over 3 and 5 years shows declines of -17.99% and -20.78%, respectively, reinforcing the notion of overvaluation.