Is Chavant Capital Acquisition Corp. overvalued or undervalued?

As of 14 May 2024, the valuation grade for Chavant Capital Acquisition Corp. has moved from does not qualify to risky, indicating a shift in the company's perceived financial health. The company is currently assessed as overvalued given its significant negative performance metrics, including a Price to Book Value of 24.49 and an EV to Sales ratio of 2.71. Notably, the company's ROCE stands at a staggering -822.12%, and the ROE is an alarming -3792.90%, reflecting severe operational inefficiencies.
In comparison to its peers, Chavant Capital's EV to EBITDA ratio of -0.78 is considerably worse than ESGEN Acquisition Corp. at -6.7186, while Mountain Crest Acquisition Corp. IV, rated fair, has a P/E ratio of 49.2202, highlighting the disparity in performance among similar firms. The company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -59.49% compared to the S&P's 2.44%. Overall, the combination of poor financial ratios and negative market performance suggests that Chavant Capital Acquisition Corp. is overvalued in its current state.