Is Arq, Inc. overvalued or undervalued?

As of 8 March 2023, the valuation grade for Arq, Inc. has moved from attractive to risky, indicating a significant deterioration in its financial outlook. The company is currently considered overvalued, particularly given its negative P/E ratio of -227.59 and a high EV to EBITDA ratio of 24.74. Additionally, the Price to Book Value stands at 1.14, which suggests that the market is pricing the company at a premium despite its losses.
In comparison to its peers, Arq, Inc. lags behind Perimeter Solutions SA, which has a P/E of 14.55 and an EV to EBITDA of 11.74, indicating a more favorable valuation. Fuel Tech, Inc. also presents a risky profile with a P/E of -21.75, while Flexible Solutions International, Inc. is rated fair with a P/E of 16.60. The recent stock performance shows that Arq, Inc. has underperformed the S&P 500 over the past year, with a return of -12.15% compared to the index's 10.26%, further supporting the conclusion of overvaluation.