Is Cheetah Net Supply Chain Service, Inc. overvalued or undervalued?

As of 13 May 2024, the valuation grade for Cheetah Net Supply Chain Service, Inc. has moved from attractive to risky, indicating a significant deterioration in its financial health. The company is currently overvalued, with a Price to Book Value of 0.44 and an EV to Sales ratio of 2.64, which suggests that investors are paying a premium despite the company's losses. Notably, the ROCE stands at -39.79% and the ROE at -31.91%, both of which reflect poor profitability and efficiency.
In comparison to its peers, Cheetah Net's valuation metrics are concerning. For instance, Bowman Consulting Group Ltd. has a P/E ratio of 204.59, while MISTRAS Group, Inc. shows a more favorable EV to EBITDA of 5.59, highlighting the disparity in performance and valuation within the sector. The company's recent stock performance has also been dismal, with a year-to-date return of -60.78%, starkly contrasting with the S&P 500's 2.44% gain, reinforcing the view that Cheetah Net is not a sound investment at its current price.