Is AvePoint, Inc. overvalued or undervalued?

As of 16 November 2020, AvePoint, Inc. moved from expensive to risky in its valuation grade, indicating a shift in perception regarding its market position. The company appears to be overvalued, given its P/E ratio of 274, which significantly exceeds the industry average, and an EV to EBITDA ratio of 147.23. Additionally, the PEG ratio stands at 0.69, suggesting that while growth may be anticipated, the current price does not justify the valuation based on earnings growth. In comparison to peers, Sterling Check Corp. has a P/E ratio of 48.01 and an EV to EBITDA of 14.89, highlighting a stark contrast in valuation metrics. The high ROCE of 96.80% for AvePoint is notable, but it is overshadowed by a low ROE of 4.04%, indicating inefficiencies in generating returns for shareholders. Recent stock performance shows that AvePoint has outperformed the S&P 500 over the past year with an 82.49% return, yet this does not mitigate the concerns regarding its current overvaluation.