Is CPS Technologies Corp. overvalued or undervalued?

As of 31 July 2024, CPS Technologies Corp. has moved from a fair to a risky valuation grade. The company is currently considered overvalued based on its financial metrics. Key ratios include a Price to Book Value of 2.72, an EV to EBIT of -9.34, and an EV to EBITDA of -11.03, indicating significant operational losses and a lack of profitability.
In comparison to its peers, CPS Technologies Corp. has a P/E ratio that is not applicable due to losses, while Xometry, Inc. also shows a risky valuation with a P/E of -34.24. In contrast, NL Industries, Inc. is classified as very attractive with a P/E of 4.72, highlighting the disparity in valuation among industry players. Additionally, CPS Technologies has demonstrated strong stock performance with a year-to-date return of 88.82%, significantly outperforming the S&P 500's 2.44% return, which may further complicate its valuation outlook.