Is MEI Pharma, Inc. overvalued or undervalued?

As of 8 July 2024, MEI Pharma, Inc. has moved from a very attractive valuation grade to one that does not qualify. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 0.74 and an EV to EBITDA ratio of 0.27, which indicate a lack of profitability and efficiency in generating earnings relative to its enterprise value. Additionally, the ROE stands at -106.26%, highlighting significant losses relative to shareholder equity.
In comparison to its peers, MEI Pharma, Inc. shows a less favorable position, with Immunic, Inc. having a P/E ratio of -0.8008 and Adicet Bio, Inc. at -0.5353, suggesting that while all companies are struggling, MEI's valuation metrics are particularly concerning. The stock has underperformed significantly against the S&P 500, with a 1Y return of -10.86% compared to the index's 17.14%, and a staggering -96.17% over the last 5 years, reinforcing the notion that the company is not a viable investment at its current price.