Is ReShape Lifesciences, Inc. overvalued or undervalued?

As of 16 August 2021, ReShape Lifesciences, Inc. has moved from a grade of "does not qualify" to "risky," indicating a significant deterioration in its valuation outlook. The company is overvalued, given its negative financial metrics, including a Price to Book Value of 2.51 and an EV to EBITDA of -0.09. Additionally, the Return on Equity (ROE) stands at a staggering -501.25%, which further underscores the company's financial struggles.
In comparison to its peers, ReShape Lifesciences exhibits worse performance metrics, with NanoVibronix, Inc. showing a P/E of -0.9426 and EV to EBITDA of -0.2892, while INVO BioScience, Inc. has an EV to EBITDA of -0.6859. The company's stock has significantly underperformed against the S&P 500, with a year-to-date return of -98.52% compared to the S&P 500's 12.22%, reinforcing the notion that ReShape Lifesciences is not a viable investment at this time.