Is Arq, Inc. overvalued or undervalued?

As of 8 March 2023, the valuation grade for Arq, Inc. has moved from expensive to risky, indicating a shift in perception regarding its financial health and market position. The company appears to be overvalued based on its current metrics, particularly given its P/E ratio is not applicable due to losses, while the Price to Book Value stands at 1.14, and the EV to EBITDA is at 24.74. Additionally, the ROCE is a mere 0.79%, and the ROE is negative at -0.03%, further highlighting the company's struggles.
In comparison to peers, Flexible Solutions International, Inc. has a fair valuation with a P/E of 30.09 and an EV to EBITDA of 15.04, while Fuel Tech, Inc. is also classified as risky with a negative P/E and an EV to EBITDA of -17.53. These comparisons suggest that Arq, Inc. is not only underperforming relative to its industry but is also facing significant challenges that contribute to its overvaluation status. While specific return data is not available, the lack of positive performance metrics reinforces the notion that the stock is not favorably positioned in the current market landscape.