Is Crown ElectroKinetics Corp. overvalued or undervalued?

As of 14 August 2024, the valuation grade for Crown ElectroKinetics Corp. has moved from does not qualify to risky. The company appears to be overvalued given its significant losses and negative financial metrics. The Price to Book Value stands at 0.06, the EV to EBIT is 0.62, and the EV to EBITDA is 0.67, indicating that the company is trading at a very low valuation relative to its earnings and book value, yet the negative ROE of -86.52% signals severe profitability issues.
In comparison to its peers, Crown ElectroKinetics Corp. has a less favorable EV to EBITDA ratio than iSpecimen, Inc. at -0.6182 and Digital Ally, Inc. at -0.4564, both of which also reflect risky valuations. The company's stock has dramatically underperformed relative to the S&P 500, with a year-to-date return of -97.11% compared to the S&P 500's 12.22%, reinforcing the notion that the stock is not only risky but also overvalued in its current state.