Is Adamas One Corp. overvalued or undervalued?

As of 10 May 2024, Adamas One Corp. has moved from a valuation grade of risky to does not qualify, indicating a significant deterioration in its financial standing. The company is currently overvalued, particularly given its negative performance indicators, including a P/E ratio of -0.0259 and an EV to EBITDA ratio of -0.61. The return on capital employed (ROCE) stands at a staggering -212.39%, highlighting severe inefficiencies in generating returns from its capital.
When compared to peers, Adamas One Corp. lags significantly behind Movado Group, Inc., which boasts a P/E ratio of 21.12 and an EV to EBITDA of 7.96, indicating a much more favorable valuation. Additionally, Fossil Group, Inc. shows a P/E of -2.86, emphasizing the challenges faced by companies in this sector. The stock's performance has been dismal, with a year-to-date return of -44.44%, contrasting sharply with the S&P 500's modest 2.44% gain. This further reinforces the notion that Adamas One Corp. is currently overvalued in the market.