Is Data Storage Corp. overvalued or undervalued?

As of 14 August 2025, the valuation grade for Data Storage Corp. has moved from attractive to risky, indicating a shift in perception regarding its investment potential. The company appears to be overvalued, given its P/E ratio of 28, which is significantly higher than the peer average of approximately 21.88 for Cheche Group, Inc. and 15.30 for VirTra, Inc. Additionally, the EV to EBITDA ratio stands at 12.74, which is also elevated compared to its peers, suggesting that investors are paying a premium for earnings before interest, taxes, depreciation, and amortization.
The Price to Book Value of 1.28 and a negative ROCE of -2.12% further reinforce the notion that Data Storage Corp. is not performing well relative to its asset base, and its ROE of 0.89% indicates minimal returns on equity. While specific return data is not available for comparison against the S&P 500, the overall valuation metrics suggest that the stock is not positioned favorably in the current market environment.