Is CSP, Inc. overvalued or undervalued?

As of 14 May 2025, CSP, Inc. has moved from an expensive to a risky valuation grade. The company appears to be overvalued given its negative financial metrics, including a Price to Book Value of 2.77, an EV to EBIT of -24.88, and an EV to EBITDA of -30.67. In comparison, peers such as Telos Corp. have a P/E of -10.5895 and Rimini Street, Inc. shows a more favorable EV to EBITDA of 7.9182, indicating that CSP, Inc. is not performing as well as its competitors.
The stock has shown mixed performance against the S&P 500, with a notable 3-year return of 209.61%, significantly outperforming the index's 70.41% return, but it has underperformed year-to-date with a decline of -18.79% compared to the S&P 500's 12.22% gain. This suggests that while CSP, Inc. has had strong historical returns, its current valuation and financial health raise concerns about its sustainability moving forward.