Is Empire Petroleum Corp. overvalued or undervalued?

As of 14 August 2023, the valuation grade for Empire Petroleum Corp. has moved from expensive to risky, indicating a significant downgrade in its perceived value. The company is currently assessed as overvalued given its negative P/E ratio and poor returns on capital, with a Price to Book Value of 2.96 and a ROE of -27.84%.
In comparison to its peers, Empire Petroleum Corp. stands out negatively with an EV to EBITDA ratio of -165.45, while SilverBow Resources, Inc. has a more favorable EV to EBITDA of 3.93, and Vitesse Energy, Inc. boasts an impressive P/E of 38.88. The company's recent stock performance shows a 41.23% return over the past month, which contrasts sharply with its year-to-date decline of 24.74%, reinforcing the notion that it is currently overvalued in the market.