Is OceanPal, Inc. overvalued or undervalued?

As of 30 March 2023, OceanPal, Inc. has moved from a grade of "does not qualify" to "risky," indicating a heightened level of concern regarding its valuation. The company is currently considered overvalued given its financial metrics, including a Price to Book Value of 0.06, an EV to EBIT of 0.35, and a negative ROE of -13.91%. These ratios reflect significant operational challenges and a lack of profitability, which further supports the overvaluation verdict.
In comparison to its peers, OceanPal's P/E ratio is not applicable due to its loss-making status, while Imperial Petroleum, Inc. has a P/E of 3.0731 and an EV to EBITDA of -1.6555, suggesting a more favorable valuation. Additionally, Top Ships, Inc. has a P/E of 5.4864 and an EV to EBITDA of 6.9012, indicating that OceanPal's financial performance is lagging behind its competitors. Despite a strong one-month stock return of 185.68% compared to the S&P 500's 3.83%, the overall financial health and valuation metrics suggest that OceanPal, Inc. is overvalued in the current market context.