Is Dolphin Entertainment, Inc. overvalued or undervalued?

As of 17 August 2020, Dolphin Entertainment, Inc. has moved from an attractive to a risky valuation grade. The company appears to be overvalued given its current financial metrics, including a Price to Book Value of 1.41 and an EV to Sales ratio of 0.61, which suggest limited growth potential. Additionally, the company has a negative ROCE of -16.22% and an even more concerning ROE of -65.25%, indicating significant inefficiencies in generating returns for shareholders.
In comparison to its peers, Dolphin's valuation ratios are notably poor. For instance, National CineMedia, Inc. has a P/E ratio of -26.47 and an EV to EBITDA of 19.91, while Boston Omaha Corp. boasts a very attractive P/E of 104.17 and an EV to EBITDA of 17.83. These comparisons highlight that Dolphin is not only underperforming relative to its industry but also lacks the financial strength exhibited by its more successful peers. Furthermore, the company's stock has significantly underperformed the S&P 500 over the past year, declining by 42.11% compared to the index's 10.26% gain, reinforcing the notion that Dolphin Entertainment is currently overvalued.