Is SunLink Health Systems, Inc. overvalued or undervalued?

As of 28 September 2022, the valuation grade for SunLink Health Systems, Inc. moved from very attractive to risky. The company is currently considered overvalued. Key ratios include a price to book value of 0.46, an EV to EBIT of 0.28, and an EV to EBITDA of 0.50, all indicating significant financial distress and inefficiency.
In comparison to its peers, Brookdale Senior Living, Inc. has a P/E ratio of -10.15 and an EV to EBITDA of 3.19, while National HealthCare Corp. stands at a fair valuation with a P/E of 15.83 and an EV to EBITDA of 8.29. These comparisons highlight SunLink's underperformance relative to more stable companies in the sector. Additionally, while SunLink has shown a strong one-year return of 63.69% compared to the S&P 500's 10.26%, this does not mitigate the overall risk reflected in its current valuation metrics.