Is Novo Integrated Sciences, Inc. overvalued or undervalued?

As of 6 November 2024, the valuation grade for Novo Integrated Sciences, Inc. has moved from risky to does not qualify, indicating significant concerns regarding its financial health. The company appears to be overvalued given its current valuation metrics, which include a Price to Book Value of 0.01, an EV to EBIT of -0.46, and an EV to EBITDA of -0.63. These ratios suggest that the company is not generating positive earnings or cash flows, which is critical for valuation.
In comparison to its peers, Novo Integrated Sciences shows a stark contrast; for instance, Sera Prognostics, Inc. has an EV to EBITDA of -2.2464, while IMAC Holdings, Inc. stands at -0.2777. This highlights that even among similarly struggling companies, Novo Integrated Sciences is lagging significantly. Additionally, the stock has experienced a drastic decline, with a year-to-date return of -99.04% compared to a 12.22% gain in the S&P 500, reinforcing the notion that the company is not only overvalued but also facing severe operational challenges.