Is Cemtrex, Inc. overvalued or undervalued?

As of 18 February 2022, Cemtrex, Inc. has moved from a fair to a risky valuation grade, indicating a significant deterioration in its financial outlook. The company is currently overvalued given its negative performance indicators, including a Price to Book Value of 0.44 and an EV to Sales ratio of 0.26, which suggest that the market is not pricing in the company's losses adequately. Additionally, the ROE stands at a concerning -58.21%, further highlighting the company's struggles.
In comparison to its peers, Cemtrex's valuation metrics appear unfavorable. For instance, Electro-Sensors, Inc. is categorized as very expensive with a P/E ratio of 14.42, while other risky peers like Laser Photonics Corp. show a significantly negative EV to EBITDA of -10.13. The stark contrast in performance and valuation ratios indicates that Cemtrex is not only underperforming relative to its peers but is also likely to remain undervalued in the current market environment. The company's stock has drastically underperformed against the S&P 500, with a year-to-date return of -65.05% compared to the index's 2.44%, reinforcing the notion of its overvaluation.