Is Datasea, Inc. overvalued or undervalued?

As of 11 February 2022, the valuation grade for Datasea, Inc. moved from does not qualify to risky, indicating a deteriorating outlook. The company appears to be overvalued, given its high Price to Book Value of 6.33 and negative EV to EBIT and EV to EBITDA ratios of -1.85 and -2.03, respectively. Additionally, the Return on Capital Employed (ROCE) stands at a concerning -255.60%, and the Return on Equity (ROE) is even worse at -361.06%. In comparison to peers, Datasea's valuation ratios are significantly less favorable; for instance, Allot Ltd. has a P/E ratio of -397.74, while SuperCom Ltd. shows a fair valuation with a P/E of 6.06. Notably, over the past year, Datasea's stock has returned 8.00%, which is underperforming compared to the S&P 500's return of 17.14%, reinforcing the perception of overvaluation.