Is Versus Systems, Inc. overvalued or undervalued?

As of 15 May 2023, the valuation grade for Versus Systems, Inc. has moved from risky to does not qualify, indicating a significant deterioration in its financial standing. The company appears to be overvalued given its current price of $2.21, especially when considering its negative P/E ratio and troubling returns on capital and equity, with ROCE at -50.07% and ROE at -39.01%. The EV to Sales ratio stands at 8.70, which is notably high compared to its peers.
In comparison to its peers, such as SharpLink Gaming Ltd. with an EV to EBITDA of -149.19 and Marpai, Inc. with -1.85, Versus Systems, Inc. does not present a compelling investment case. The company’s performance has been lackluster, particularly over the long term, with a staggering 99.64% decline over the past five years. Overall, the analysis suggests that Versus Systems, Inc. is overvalued in the current market environment.