Is Emerson Radio Corp. overvalued or undervalued?

As of 14 November 2024, Emerson Radio Corp. has moved from a fair to a risky valuation grade. The company appears to be overvalued given its negative financial metrics, including a Price to Book Value of 0.98, an EV to EBITDA of -1.68, and a ROCE of -55.97%. In comparison to peers, Acme United Corp. has a fair valuation with a P/E of 22.49, while GrowGeneration Corp. is also risky with an EV to EBITDA of -2.30, highlighting Emerson's relative underperformance.
The stock has shown a mixed performance against the S&P 500, with a 1-week return of 6.63% compared to the index's 1.05%, but it has significantly lagged over longer periods, such as a 5-year return of -30.95% against the S&P's 96.61%. These figures reinforce the notion that Emerson Radio Corp. is overvalued in its current state.