Is Vanta Bioscience overvalued or undervalued?

As of 4 August 2025, Vanta Bioscience's valuation grade has moved from does not qualify to risky, indicating a significant deterioration in its financial standing. The company is currently assessed as overvalued, given its troubling financial ratios, including a PE Ratio of -3.38, an EV to EBIT of -8.02, and an ROE of -31.38%. These figures suggest that Vanta is struggling to generate profits and is facing substantial operational challenges.
In comparison to its peers, Vanta's ratios starkly contrast with those of Altius Telecom, which boasts a PE Ratio of 55.44, and Embassy Off.REIT at 23.07. This highlights Vanta's underperformance within the healthcare services sector. The company's recent stock performance has also been dismal, with a year-to-date decline of 42.53%, significantly underperforming the Sensex, which has gained 3.69% in the same period. Overall, Vanta Bioscience's financial metrics and peer comparisons strongly indicate that it is overvalued in the current market environment.