Is Midwest Gold overvalued or undervalued?

As of 22 September 2023, the valuation grade for Midwest Gold has moved from does not qualify to risky, indicating increased concerns regarding its financial health. The company appears to be overvalued, particularly given its troubling financial ratios, including a PE ratio of -129.90, an EV to EBIT of -150.30, and an EV to EBITDA of -170.76. These negative figures suggest significant operational challenges that are not being reflected in its current stock price.
In comparison to its peers, Midwest Gold's valuation metrics are starkly unfavorable. For instance, MMTC has a PE ratio of 119.39 and an EV to EBITDA of -70.04, while PTC India, categorized as very attractive, boasts a PE of 9.02 and an EV to EBITDA of 4.14. The stark contrast in these ratios highlights Midwest Gold's overvaluation in the current market context. Additionally, the company has significantly outperformed the Sensex in recent periods, with a year-to-date return of 501.95% compared to the Sensex's 5.64%, which may have contributed to inflated market expectations despite its underlying financial issues.