Is Dolphin Entertainment, Inc. overvalued or undervalued?

As of 17 August 2020, the valuation grade for Dolphin Entertainment, Inc. moved from attractive to risky, indicating a significant deterioration in its financial outlook. The company appears to be overvalued, particularly given its negative performance metrics. Key ratios include a Price to Book Value of 1.41, an EV to EBIT of -7.09, and an EV to Sales of 0.61, which highlight the challenges the company faces in generating positive returns.
In comparison to its peers, Dolphin's valuation metrics are concerning; for example, IBEX Ltd. has a P/E ratio of 10.62 and an EV to EBITDA of 6.41, while National CineMedia, Inc. shows a risky valuation with a P/E of -20.35 and an EV to EBITDA of 22.53. The stark contrast in these ratios suggests that Dolphin is not performing well relative to its industry. Additionally, while Dolphin's stock has outperformed the S&P 500 in the short term with a 1-week return of 4.20% compared to 1.05%, its long-term performance is troubling, with a 3-year return of -84.10% versus the S&P 500's 70.41%.