Is AudioEye, Inc. overvalued or undervalued?

As of 15 May 2017, the valuation grade for AudioEye, Inc. has moved from does not qualify to risky, indicating a significant downgrade in its financial standing. The company appears to be overvalued, given its troubling financial ratios, including a Price to Book Value of 19.86, an EV to EBIT of -45.15, and a ROE of -56.23%. These figures suggest that the company is struggling to generate returns and is not effectively utilizing its equity.
When compared to peers, AudioEye's performance is concerning. For instance, Porch Group, Inc. has a P/E ratio of -27.89 and an EV to EBITDA of 55.65, while Angi, Inc. stands out with an attractive P/E of 14.76 and an EV to EBITDA of 7.87. This stark contrast highlights AudioEye's challenges in the market. Additionally, the company's stock has underperformed relative to the S&P 500, with a year-to-date return of -23.60% compared to the index's 2.44%. Overall, these indicators reinforce the conclusion that AudioEye, Inc. is overvalued in its current state.