Is AudioEye, Inc. overvalued or undervalued?

As of 15 May 2017, the valuation grade for AudioEye, Inc. moved from does not qualify to risky. The company is currently overvalued given its negative earnings and high valuation ratios. The Price to Book Value stands at 19.86, while the EV to Sales ratio is 4.38, indicating a significant premium over its sales. Additionally, the ROE is reported at -56.23%, reflecting poor profitability.
In comparison to its peers, AudioEye, Inc. has a much lower P/E ratio of -32.02 compared to Angi, Inc., which has a P/E of 14.77, highlighting its relative overvaluation. Other risky peers like Brightcove, Inc. show a P/E of -21.99 and an EV to EBITDA of 33.03, further emphasizing AudioEye's unfavorable position. Notably, while AudioEye's stock has returned 132.59% over the past three years, it has underperformed against the S&P 500, which returned 70.41% in the same period, suggesting that despite past gains, the current valuation does not justify the investment.