Is AST Spacemobile, Inc. overvalued or undervalued?

As of 14 August 2024, the valuation grade for AST Spacemobile, Inc. has moved from does not qualify to risky. The company is currently considered overvalued based on its financial metrics. Key ratios include a Price to Book Value of 18.00, an EV to EBIT of -39.28, and an EV to Sales of 2120.24, all of which indicate significant financial distress and lack of profitability. When compared to peers, AST Spacemobile's metrics are starkly unfavorable; for instance, Ituran Location & Control Ltd. has a P/E ratio of 13.96 and an EV to EBITDA of 7.98, while GDEV, Inc. shows a P/E of 7.28 and an EV to EBITDA of 6.24. These comparisons highlight the substantial overvaluation of AST Spacemobile, especially given its negative earnings and high debt ratios. Additionally, the company's stock has outperformed the S&P 500 significantly over the past year, returning 398.02% compared to the S&P 500's 10.26%, which may contribute to its inflated valuation perception.