Is Neptune Wellness Solutions, Inc. overvalued or undervalued?

As of 8 July 2024, the valuation grade for Neptune Wellness Solutions, Inc. has moved from risky to does not qualify, indicating a significant deterioration in its valuation outlook. The company appears to be overvalued given its current financial metrics, particularly with a P/E ratio of -0.0027 and an EV to EBITDA ratio of -0.5617, both of which suggest a lack of profitability and negative enterprise value relative to earnings. Additionally, the ROE stands at an impressive 172.33%, but this is misleading due to the negative capital employed.
In comparison with peers, Cidara Therapeutics, Inc. has a P/E of -13.4584 and an EV to EBITDA of -7.9458, while MIRA Pharmaceuticals, Inc. shows an EV to EBITDA of -2.7591. These figures highlight that Neptune's valuation metrics are significantly worse than those of its peers. Despite a remarkable recent stock performance, with a 1-week return of 99.33% compared to the S&P 500's 1.05%, the long-term outlook remains bleak, as evidenced by a staggering 5-year return of -100%. Overall, Neptune Wellness Solutions, Inc. is currently overvalued.