Is CYNGN, Inc. overvalued or undervalued?

As of 8 May 2024, the valuation grade for CYNGN, Inc. has moved from risky to does not qualify, indicating a significant deterioration in its financial standing. The company is currently considered overvalued, particularly given its negative P/E ratio and poor performance metrics. Key ratios include a Price to Book Value of 0.38, an EV to EBIT of 0.35, and an EV to EBITDA of 0.37, all of which reflect the company's struggles in generating positive returns.
In comparison to its peers, CYNGN, Inc. stands out unfavorably against CareCloud, Inc., which has a P/E of 9.67 and an EV to EBITDA of 3.59, and CXApp, Inc., which has a P/E of -1.29 and an EV to EBITDA of -1.90. The stark contrast in these ratios highlights CYNGN's challenges in the market. Additionally, the company's stock has significantly underperformed relative to the S&P 500, with a year-to-date return of -96.81% compared to the index's 2.44%, further reinforcing the view that CYNGN is overvalued in its current state.