Is Bit Digital, Inc. overvalued or undervalued?

As of 15 May 2025, the valuation grade for Bit Digital, Inc. has moved from attractive to risky, indicating a significant deterioration in its financial outlook. The company is currently assessed as overvalued, especially given its negative P/E ratio and troubling returns on capital and equity, with ROCE at -11.57% and ROE at -19.04%. The Price to Book Value stands at 1.32, while the EV to EBITDA ratio is an alarming 116.41, suggesting that the market is pricing in expectations that are not being met by the company's performance.
In comparison to peers, Bit Digital, Inc. shows a stark contrast to Universal Technical Institute, Inc., which has a P/E of 31.55 and an EV to EBITDA of 13.60, reflecting a more favorable valuation. Additionally, Willdan Group, Inc. is considered expensive with a P/E of 34.31, further emphasizing the challenges faced by Bit Digital. The stock has underperformed against the S&P 500 over various time frames, including a year-to-date decline of 20.82% compared to a modest gain of 2.44% for the index, reinforcing the notion that the company is currently overvalued in the market.