Is Broadwind, Inc. overvalued or undervalued?

As of 13 May 2025, the valuation grade for Broadwind, Inc. has moved from expensive to risky, indicating a more cautious outlook. The company appears to be overvalued given its current financial metrics, particularly with a Price to Book Value of 0.71, an EV to EBITDA of 6.31, and a ROCE of only 3.11%. In comparison to peers, Broadwind's EV to EBITDA ratio is significantly lower than that of Ultralife Corp, which stands at 14.9723, highlighting its relative underperformance.
Additionally, Broadwind's stock has underperformed against the S&P 500 over multiple periods, with a 3-year return of -28.38% compared to the S&P 500's 70.41%. This trend reinforces the notion that the stock may not be a favorable investment at its current valuation.