Is Air Industries Group overvalued or undervalued?

As of 9 February 2023, the valuation grade for Air Industries Group moved from expensive to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued, particularly given its negative P/E ratio and poor return metrics. Key ratios include a Price to Book Value of 0.83, an EV to EBITDA of 12.79, and an EV to Sales of 0.71, which suggest that the company is not generating sufficient value relative to its market price.
In comparison to peers, TAT Technologies Ltd. has a significantly higher P/E ratio of 33.36, while Byrna Technologies, Inc. shows a P/E of 29.95, highlighting the disparity in valuation within the industry. The stock has underperformed against the S&P 500, with a year-to-date return of -22.60% compared to the index's 12.22%, and a one-year return of -46.15% versus 17.14% for the S&P 500, reinforcing the notion that Air Industries Group is struggling in the current market environment.