Is Moolec Science SA overvalued or undervalued?

As of 14 December 2023, Moolec Science SA's valuation grade has moved from does not qualify to risky, indicating a significant shift in its financial outlook. The company is currently assessed as overvalued, primarily due to its troubling financial ratios. The Price to Book Value stands at 9.90, while the EV to Sales ratio is at 6.09, both of which suggest that the company's market valuation is not justified by its underlying assets or sales performance. Additionally, the ROCE is a concerning -45.51%, and the ROE is alarmingly at -294.74%, reflecting severe inefficiencies and losses.
In comparison with its peers, Moolec's P/E ratio is not applicable due to its loss-making status, while Bit Digital, Inc. has a P/E of -6.38, and Absci Corp. shows a P/E of -3.22, indicating that Moolec is not alone in its struggles. However, the high valuation metrics relative to these peers suggest that Moolec is priced too high given its financial performance. The company's stock has underperformed significantly against the S&P 500 over various time frames, including a 1Y return of -37.32% compared to the index's 10.26%, further reinforcing the view that it is overvalued in the current market environment.