Is authID, Inc. overvalued or undervalued?

As of 13 May 2025, the valuation grade for authID, Inc. has moved from does not qualify to risky, indicating a shift towards greater caution regarding its financial health. The company appears to be overvalued, given its high Price to Book Value of 9.22 and negative EV to EBIT and EV to EBITDA ratios of -4.24 and -4.28, respectively. Additionally, the Return on Capital Employed (ROCE) and Return on Equity (ROE) are significantly negative at -333.98% and -203.93%, respectively, highlighting severe profitability issues.
In comparison to peers, authID, Inc. has a P/E ratio of -2.8445, which is less favorable than Kopin Corp.'s -26.2862 and Transphorm, Inc.'s -9.7423, suggesting that authID is not only struggling but also underperforming relative to its industry counterparts. While the stock's recent performance against the S&P 500 is not available, the overall financial metrics indicate a concerning outlook for investors considering the company's valuation.