Is MEI Pharma, Inc. overvalued or undervalued?

As of 12 November 2024, the valuation grade for MEI Pharma, Inc. has moved from attractive to does not qualify. This indicates a significant deterioration in its valuation outlook. The company is currently considered overvalued, particularly given its price-to-book value of 0.74 and an EV to EBITDA ratio of 0.27, which suggest that the market is not pricing in any potential for profitability despite its high ROCE of 2265.80%.
In comparison to peers, MEI Pharma's valuation metrics are concerning. For instance, Outlook Therapeutics, Inc. has a valuation of -0.9541 with an EV to EBITDA of -1.2836, while Clearside Biomedical, Inc. is rated risky with a valuation of -1.9925 and an EV to EBITDA of -3.9687. These comparisons highlight that MEI Pharma's financial ratios are not only underwhelming but also indicate a lack of confidence in the company's future performance. Additionally, the stock has underperformed relative to the S&P 500 over various time frames, notably with a year-to-date return of -10.57% compared to the S&P 500's 2.44%.