Is ClearSign Technologies Corp. overvalued or undervalued?

As of 15 May 2023, the valuation grade for ClearSign Technologies Corp. has moved from does not qualify to risky, indicating a more cautious outlook on the company's financial health. The company appears to be overvalued given its negative P/E ratio and other concerning metrics, including a Price to Book Value of 2.87 and an EV to Sales ratio of 7.53. Additionally, the latest ROE stands at a troubling -51.89%, further emphasizing the challenges the company faces.
In comparison to its peers, ClearSign Technologies Corp. has a significantly lower valuation with a P/E of -5.0669, while Natural Gas Services Group, Inc. and Perma-Pipe International Holdings, Inc. are both fairly valued with P/E ratios of 17.5712 and 14.8827, respectively. The stock has underperformed against the S&P 500, with a year-to-date return of -65.25% compared to the index's 12.22%, reinforcing the notion that the stock is currently overvalued.