Is CPS Technologies Corp. overvalued or undervalued?

As of 31 July 2024, the valuation grade for CPS Technologies Corp. has moved from expensive to risky, indicating a shift in perception regarding its financial health. Based on the available metrics, the company appears to be overvalued. The Price to Book Value stands at 2.72, while the EV to Sales ratio is 1.64, both suggesting that the stock is priced higher relative to its underlying assets and sales performance. Additionally, the EV to Capital Employed ratio of 3.13 further reinforces this notion of overvaluation.
In comparison to its peers, CPS Technologies Corp. has a significantly negative EV to EBITDA of -11.03, while Insteel Industries, Inc. shows a fair valuation with an EV to EBITDA of 12.1037, indicating a healthier financial position. Olympic Steel, Inc. is categorized as very expensive with a P/E ratio of 26.6279, further highlighting the relative overvaluation of CPS Technologies. Notably, CPS Technologies Corp. has outperformed the S&P 500 with a year-to-date return of 108.07% compared to the index's 12.22%, but this strong performance does not mitigate its current overvaluation status.