Is TOMI Environmental Solutions, Inc. overvalued or undervalued?

As of 16 August 2021, the valuation grade for TOMI Environmental Solutions, Inc. moved from expensive to risky. The company is currently considered overvalued, primarily due to its negative performance metrics. The P/E ratio is not applicable as the company is loss-making, while the Price to Book Value stands at 5.52, indicating a high valuation relative to its net assets. Additionally, the EV to EBITDA ratio is -7.00, further underscoring the company's financial struggles.
In comparison to its peers, TOMI Environmental Solutions, Inc. shows weaker metrics; for instance, KULR Technology Group, Inc. has an EV to EBITDA of -11.28, and Palladyne AI Corp. has an EV to EBITDA of -10.05, both indicating similarly risky valuations. The company's Return on Capital Employed (ROCE) is at a troubling -61.32%, and its Return on Equity (ROE) is at -89.04%, which are significantly lower than those of its peers. Overall, the combination of these ratios and the company's recent stock performance, which has lagged behind the S&P 500 over the past year, reinforces the conclusion that TOMI Environmental Solutions, Inc. is overvalued.