Is Shineco, Inc. overvalued or undervalued?

As of 14 November 2023, the valuation grade for Shineco, Inc. has moved from does not qualify to risky. The company is currently considered overvalued given its significant financial distress and negative performance indicators. Key ratios include a Price to Book Value of 0.16, an EV to EBIT of -1.46, and an ROE of -26.38%.
In comparison to its peers, Shineco's valuation metrics are concerning. For instance, Calavo Growers, Inc. is rated fair with a P/E ratio of 31.94, while Alico, Inc. and BARK, Inc. are also classified as risky with EV to EBITDA ratios of -10.09 and -5.53, respectively. Shineco's stock has dramatically underperformed against the S&P 500, with a year-to-date return of -95.08% compared to the index's 2.44%, reinforcing the notion that the company is overvalued in its current state.