Is ConnectM Technology Solutions, Inc. overvalued or undervalued?

As of 9 November 2023, the valuation grade for ConnectM Technology Solutions, Inc. has moved from does not qualify to risky, indicating a heightened level of concern regarding its financial health. The company appears to be overvalued, particularly given its negative P/E ratio of -0.0185 and an EV to EBITDA ratio of -1.4244, which suggest that the market is pricing in significant risks that are not being compensated by earnings.
In comparison to its peers, ConnectM's valuation metrics are concerning; for instance, it has a PEG ratio of 0.0, which is not typical for a healthy company. Notably, its performance has been starkly negative, with a year-to-date return of -85.95% compared to the S&P 500's positive return of 12.22%, reinforcing the notion that the stock is underperforming significantly against broader market benchmarks.