Is NeuroOne Medical Technologies Corp. overvalued or undervalued?

As of 22 December 2022, the valuation grade for NeuroOne Medical Technologies Corp. moved from does not qualify to risky, indicating a heightened level of concern regarding its financial performance. The company is currently deemed overvalued, particularly given its significant negative metrics. The Price to Book Value stands at 25.74, while the EV to EBITDA and EV to EBIT ratios are -4.39 and -4.22, respectively, highlighting the company's struggles to generate positive earnings.
In comparison to its peers, NeuroOne's valuation ratios are notably unfavorable. For instance, LENSAR, Inc. has an EV to EBITDA of -20.9987, while Nortech Systems, Inc. shows an EV to EBITDA of -36.5742, both indicating similar risk profiles but with more severe valuations. The company's ROE is alarmingly low at -626.73%, further emphasizing its financial distress. Overall, these factors suggest that NeuroOne Medical Technologies Corp. is overvalued in the current market context.