Is CVD Equipment Corp. overvalued or undervalued?

As of 14 November 2023, the valuation grade for CVD Equipment Corp. has moved from expensive to risky, indicating a deteriorating outlook. The company appears to be overvalued, particularly given its negative financial metrics. Key ratios include a Price to Book Value of 0.83, an EV to Sales ratio of 0.38, and an EV to EBITDA of -11.57.
In comparison to peers, CVD Equipment Corp. has a significantly lower EV to EBITDA ratio than Kimball Electronics, Inc. at 9.82, and a worse P/E ratio than AXT, Inc. at -5.47, which also reflects the company's challenging position within the industry. Over the past year, CVD Equipment Corp. has underperformed against the S&P 500, returning -8.11% compared to the index's 17.14%, further supporting the view that the stock is currently overvalued.