Is Village Farms International, Inc. overvalued or undervalued?

As of 9 August 2021, the valuation grade for Village Farms International, Inc. changed from expensive to risky, indicating a shift towards a more cautious outlook. The company is currently considered overvalued based on its financial metrics. Key ratios include a Price to Book Value of 0.54, an EV to EBIT of -5.86, and an EV to Sales of 0.49, all of which suggest significant challenges in profitability and valuation compared to its peers.
In the peer comparison, Village Farms International has a P/E ratio of -68.42, which is notably worse than Blackrock TCP Capital Corp. at -51.75 and Permianville Royalty Trust at 21.21. This stark contrast highlights the company's struggles relative to its industry. Additionally, while Village Farms has shown impressive YTD returns of 251.49% compared to the S&P 500's 12.22%, its longer-term performance has been lackluster, with a 5Y return of -52.79%, reinforcing concerns about its current valuation.