Is Bridgeline Digital, Inc. overvalued or undervalued?

As of 15 May 2023, Bridgeline Digital, Inc. has moved from an attractive to a risky valuation grade, indicating a significant shift in its financial outlook. The company is currently considered overvalued given its negative performance metrics, including a Price to Book Value of 1.79 and an EV to Sales ratio of 1.08, despite being loss-making with a P/E ratio that is not applicable. The company's ROCE stands at -20.61% and ROE at -15.99%, further highlighting its financial struggles.
In comparison to its peers, Bridgeline Digital's valuation appears unfavorable. For instance, NetSol Technologies, Inc. has a P/E ratio of 26.34 and an EV to EBITDA of 10.02, categorizing it as attractive, while CISO Global, Inc. is also deemed risky with a P/E of -1.63. The recent stock performance shows that Bridgeline has underperformed against the S&P 500 over the past year, with a return of 44.12% compared to the index's 10.26%, but its year-to-date performance is down by 6.96% against a 2.44% increase for the S&P 500. Overall, the current valuation suggests that Bridgeline Digital, Inc. is overvalued in light of its financial metrics and peer comparisons.