Is Addentax Group Corp. overvalued or undervalued?

As of 14 August 2023, Addentax Group Corp. has moved from a fair to a risky valuation grade. The company appears to be overvalued given its negative financial metrics, including a Price to Book Value of 0.19, an EV to EBIT of 9.50, and an EV to EBITDA of 11.84. In comparison to peers, Park-Ohio Holdings Corp. has a more favorable EV to EBITDA of 8.79, while NL Industries, Inc. boasts a significantly lower P/E ratio of 4.86, indicating a stronger valuation position.
Despite recent stock performance showing a 52.46% return over the past month compared to the S&P 500's 2.33%, the long-term outlook remains concerning, with a staggering -98.40% return over three years. This suggests that while there may be short-term gains, the overall valuation and financial health of Addentax Group Corp. do not support a favorable investment outlook.