Is Addentax Group Corp. overvalued or undervalued?

As of 14 August 2023, the valuation grade for Addentax Group Corp. has moved from attractive to risky, indicating a significant deterioration in its financial outlook. The company is currently assessed as overvalued, given its negative P/E ratio and troubling financial metrics. Key ratios include a Price to Book Value of 0.19, an EV to EBIT of 9.50, and an EV to EBITDA of 11.84, all of which suggest that the company is struggling to generate positive returns.
In comparison to its peers, Addentax Group Corp. stands out negatively; for instance, NL Industries, Inc. has a P/E of 4.72 and an EV to EBITDA of 5.30, while CompX International, Inc. boasts a P/E of 16.45 and an EV to EBITDA of 10.46. This stark contrast highlights the challenges faced by Addentax, particularly as it has underperformed significantly against the S&P 500 over the past year, with a return of -26.21% compared to the index's 10.26%. Overall, the financial indicators and peer comparisons strongly suggest that Addentax Group Corp. is overvalued in the current market environment.