Is Energy Focus, Inc. overvalued or undervalued?

As of 14 November 2016, the valuation grade for Energy Focus, Inc. has moved from expensive to risky, indicating a significant shift in its perceived value. The company is currently considered overvalued based on its financial ratios, including a Price to Book Value of 3.53 and an EV to Sales ratio of 2.09, which are notably high given the company's loss-making status. Additionally, the negative ROCE of -60.44% and ROE of -52.59% further underscore the company's struggles to generate returns.
In comparison to its peers, Energy Focus, Inc. has an EV to EBITDA ratio of -6.58, which is worse than competitors like Ocean Power Technologies, Inc. at -4.33 and Flux Power Holdings, Inc. at -3.13. This suggests that Energy Focus, Inc. is not only underperforming relative to its peers but also carries a higher risk profile. Overall, the combination of high valuation ratios and poor financial performance leads to the conclusion that Energy Focus, Inc. is overvalued in the current market environment.