Is AstroNova, Inc. overvalued or undervalued?

As of 14 April 2025, AstroNova, Inc. has moved from a fair to a risky valuation grade, indicating a significant deterioration in its financial outlook. The company is currently considered overvalued, given its P/E ratio is not applicable due to losses, while its Price to Book Value stands at 1.32, and the EV to EBITDA ratio is at 15.12. Additionally, the Return on Capital Employed (ROCE) is a mere 3.63%, and the Return on Equity (ROE) is negative at -2.72%.
In comparison to its peers, AstroNova's valuation metrics are concerning. For instance, Stratasys Ltd. has a P/E ratio of -7.97 and an EV to EBITDA of -19.30, while ADTRAN Holdings, Inc. shows a P/E of -8.62 with an EV to EBITDA of 27.47. These figures highlight that AstroNova's financial performance is lagging behind its competitors, reinforcing the notion of overvaluation. Furthermore, the company's stock has underperformed against the S&P 500, with a year-to-date decline of 24.56% compared to a modest gain of 2.44% for the index, further supporting the assessment of its current valuation.