Is Cyanotech Corp. overvalued or undervalued?

As of 9 November 2022, the valuation grade for Cyanotech Corp. has moved from expensive to risky, indicating a significant deterioration in its valuation outlook. The company appears to be overvalued given its current financial metrics, particularly with a Price to Book Value of 0.30, an EV to EBITDA of -5.14, and a ROE of -49.02%.
In comparison to its peers, Cyanotech Corp. has a less favorable EV to EBITDA ratio than Upexi, Inc. at -37.9754 and Natural Alternatives International, Inc. at -7.6875, both of which also carry a risky valuation. The company's stock has significantly underperformed against the S&P 500, with a one-year return of -57.57% compared to the index's 17.14%, reinforcing the notion that it is overvalued in the current market context.