Is Myomo, Inc. overvalued or undervalued?
As of November 6, 2017, Myomo, Inc. is considered overvalued and risky due to its high Price to Book Value of 4.94, negative EV to EBIT and EV to EBITDA ratios, a return on equity of -26.80%, and significant underperformance with a year-to-date return of -86.96% compared to the S&P 500's 12.22%.
As of 6 November 2017, Myomo, Inc. moved from a grade of does not qualify to risky, indicating a significant downgrade in its valuation outlook. The company appears to be overvalued given its high Price to Book Value of 4.94 and negative EV to EBIT and EV to EBITDA ratios of -14.81 and -18.39, respectively. Additionally, the return on equity (ROE) stands at -26.80%, further highlighting the company's struggles.In comparison to its peers, Myomo's valuation ratios are concerning, particularly when looking at its peer with a P/E ratio of -4.0264 and EV to EBITDA of -3.378. The stark contrast in performance is evident as Myomo's stock has significantly underperformed against the S&P 500, with a year-to-date return of -86.96% compared to the S&P 500's 12.22%. This underperformance reinforces the notion that Myomo, Inc. is currently overvalued.
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