Is American Outdoor Brands, Inc. overvalued or undervalued?

As of 14 July 2022, the valuation grade for American Outdoor Brands, Inc. moved from fair to risky, indicating a significant deterioration in its financial health. The company is currently considered overvalued given its negative performance metrics, including a P/E ratio of NA due to losses, a Price to Book Value of 0.84, and an EV to EBITDA of 14.53. With a ROCE of -2.89% and a ROE of -2.46%, the financial outlook appears bleak.
In comparison to its peers, American Outdoor Brands, Inc. shows a stark contrast with companies like Marine Products Corp., which is rated very attractive with a P/E of 21.79, and Sturm, Ruger & Co., Inc., which is deemed very expensive with a P/E of 27.74. The company's recent stock performance has also been underwhelming, with a year-to-date return of -31.56%, significantly lagging behind the S&P 500's return of 2.44%. Overall, the combination of poor financial ratios and unfavorable peer comparisons suggests that American Outdoor Brands, Inc. is overvalued at its current price.