Is cbdMD, Inc. overvalued or undervalued?

As of 9 February 2021, cbdMD, Inc. moved from fair to risky, indicating a deterioration in its valuation outlook. The company appears to be overvalued, particularly given its negative financial metrics. The Price to Book Value stands at 8.51, while the EV to EBITDA ratio is 7.49, suggesting that the market is pricing the company at a premium despite its loss-making status. Additionally, the ROE is alarmingly low at -119.47%, highlighting significant inefficiencies in generating returns for shareholders.
In comparison to its peers, cbdMD, Inc. has a P/E ratio of -3.7225, which is less favorable than Mannatech, Inc. at -6.5265 and Flora Growth Corp. at -1.0973, both of which also face challenging valuations. The company's stock has significantly underperformed against the S&P 500, with a year-to-date return of -76.01% compared to the index's 12.22%, reinforcing the notion that it is overvalued in the current market environment.