Is CSP, Inc. overvalued or undervalued?

As of 14 May 2025, CSP, Inc. has moved from a fair to a risky valuation grade, indicating a significant deterioration in its financial outlook. The company is currently overvalued, as evidenced by its P/E ratio being unquantifiable due to losses, a Price to Book Value of 2.77, and an EV to EBITDA of -30.67. Additionally, the company has a negative ROCE of -22.34% and a negative ROE of -3.18%, which further underscores its financial struggles.
In comparison to its peers, CSP, Inc. shows a stark contrast with Solaris Oilfield Infrastructure, Inc., which has a P/E of 52.87, and NETGEAR, Inc., which boasts a more attractive P/E of -18.38. The valuation metrics suggest that CSP, Inc. is not only struggling relative to its industry but also facing significant challenges in generating positive returns. Notably, the stock has underperformed against the S&P 500 over various periods, including a YTD decline of 33.17% compared to the index's gain of 2.44%.