Is BYTE Acquisition Corp. overvalued or undervalued?

As of 9 February 2024, the valuation grade for BYTE Acquisition Corp. has moved from does not qualify to risky. Given the negative metrics, the company appears to be overvalued. The Price to Book Value stands at -6.92, the EV to EBIT is at -40.39, and the EV to EBITDA is at -42.93, all indicating significant financial distress.
In comparison to peers, BYTE Acquisition Corp. has a P/E ratio of -21.93, while Atlantic Coastal Acquisition Corp. has a P/E of 21.84, highlighting a stark contrast in valuation. Additionally, Battery Future Acquisition Corp., also rated risky, has a more favorable EV to EBITDA of -12.77. Despite a strong one-year stock return of 121.48% compared to the S&P 500's 17.14%, the overall financial metrics suggest that BYTE Acquisition Corp. is not a sound investment at its current valuation.