Is American Acquisition Opportunity, Inc. overvalued or undervalued?

As of 14 May 2025, the valuation grade for American Acquisition Opportunity, Inc. has moved from does not qualify to risky. The company is currently considered overvalued based on its financial metrics. The P/E ratio is not applicable due to the company being loss-making, while the price-to-book value stands at 1.12. Additionally, the EV to EBITDA ratio is -15.83, indicating significant operational challenges.
In comparison to its peers, American Acquisition Opportunity has a P/E ratio of -17.32, while PepperLime Health Acquisition Corp. is deemed expensive with a P/E of 46.50. RMG Acquisition Corp. III, which does not qualify, has a P/E of -57.12. The company's recent stock performance has outpaced the S&P 500, with a year-to-date return of 28.26% compared to the S&P 500's 2.44%, but the overall financial health suggests that it remains overvalued in the current market context.