Is BTCS, Inc. overvalued or undervalued?

As of 20 March 2025, the valuation grade for BTCS, Inc. has moved from fair to risky, indicating a deterioration in its investment appeal. The company appears to be overvalued given its significant negative financial metrics, including a Price to Book Value of 2.66, an EV to EBIT of -3.85, and an ROE of -53.59%. In comparison, peers such as Bank of the James Financial Group, Inc. have a fair P/E ratio of 9.81, and First US Bancshares, Inc. has a fair P/E ratio of 14.73, highlighting the disparity in valuation.
Despite the overvaluation, BTCS, Inc. has shown impressive stock performance, with a 1-year return of 342.34% compared to the S&P 500's 17.14%, suggesting that market sentiment may not yet reflect the underlying financial challenges. However, the overall financial indicators and peer comparisons suggest that the stock is not a sound investment at its current price.