Is CXApp, Inc. overvalued or undervalued?

As of 19 May 2023, the valuation grade for CXApp, Inc. has moved from does not qualify to risky, indicating a significant shift in its perceived financial health. The company is currently considered overvalued given its troubling financial metrics, including a Price to Book Value of 1.35 and an EV to Sales ratio of 3.31, despite being loss-making with a P/E ratio that is not applicable. Additionally, the ROCE stands at a staggering -85.19%, and the ROE is at -97.90%, highlighting severe inefficiencies in generating returns.
In comparison to its peers, CXApp, Inc. has a less favorable EV to EBITDA ratio of -1.90 compared to Beamr Imaging Ltd. at -10.51 and Phunware, Inc. at 2.87. The overall performance of CXApp, Inc. has also been disappointing, with a year-to-date stock return of -50.65%, significantly underperforming the S&P 500, which has gained 2.44% during the same period. Given these factors, CXApp, Inc. is deemed overvalued in the current market context.