Is Ascent Industries Co. overvalued or undervalued?

As of 8 August 2023, the valuation grade for Ascent Industries Co. has moved from very 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 negative P/E ratio and low ROE of -7.76%. The Price to Book Value stands at 1.65, while the EV to EBITDA is significantly high at 19.39, suggesting that investors are paying a premium for earnings that are not currently being realized.
In comparison to its peers, Ascent Industries Co. has a notably worse P/E ratio of -20.15 compared to Radius Recycling, Inc. at -13.17 and Ryerson Holding Corp. at -40.46, both of which also reflect risky valuations. Furthermore, the company's ROCE of 0.23% is alarmingly low, especially when juxtaposed with Universal Stainless & Alloy Products, Inc., which has an attractive valuation with a P/E of 15.89. While the stock has outperformed the S&P 500 over the past year with a return of 23.34%, the overall financial indicators suggest that Ascent Industries Co. is currently overvalued.