Is cbdMD, Inc. overvalued or undervalued?

As of 9 February 2021, cbdMD, Inc. has moved from an attractive to a risky valuation grade, indicating a significant downgrade in its financial outlook. The company is currently overvalued, particularly given its negative performance metrics. The P/E ratio is not applicable due to the company being loss-making, while the Price to Book Value stands at 8.51, and the EV to EBITDA is at 7.49. Additionally, the ROE is alarmingly low at -119.47%, reflecting severe inefficiencies in generating returns.
In comparison to its peers, cbdMD, Inc. exhibits a less favorable position; for instance, Mannatech, Inc. has a P/E ratio of -25.45 and an EV to EBITDA of 9.59, while Flora Growth Corp. shows an EV to EBITDA of -1.39. These comparisons highlight the struggles cbdMD faces within its industry. Furthermore, the company's stock has significantly underperformed against the S&P 500, with a staggering YTD decline of 72.47% compared to the S&P's modest gain of 2.44%.