Is AmpliTech Group, Inc. overvalued or undervalued?

As of 15 May 2020, the valuation grade for AmpliTech Group, Inc. moved from expensive to risky, indicating a shift in perception regarding its financial health and market position. Based on the available metrics, the company appears to be overvalued, particularly given its negative profitability indicators such as a ROCE of -43.63% and a ROE of -22.25%. The Price to Book Value stands at 1.36, while the EV to Sales ratio is 2.97, suggesting that investors are paying a premium for the company's assets relative to its sales performance.
In comparison to its peers, AmpliTech's EV to EBITDA ratio of -4.07 is significantly worse than that of M-tron Industries, Inc., which has an EV to EBITDA of 11.4238 and is rated as attractive. Additionally, Kimball Electronics, Inc. is categorized as very expensive with a P/E ratio of 34.6588, further highlighting AmpliTech's relative underperformance. Despite a strong 1Y return of 388.78% compared to the S&P 500's 17.14%, the overall financial metrics suggest that AmpliTech is not positioned favorably in the market, reinforcing the conclusion of overvaluation.