Is Energy Focus, Inc. overvalued or undervalued?

As of 14 November 2016, the valuation grade for Energy Focus, Inc. moved from expensive to risky, indicating a deterioration in perceived value. The company is currently considered overvalued, as evidenced by its Price to Book Value of 3.53 and negative EV to EBIT and EV to EBITDA ratios of -6.41 and -6.58, respectively. Additionally, the company's return on capital employed (ROCE) stands at a concerning -60.44%, reflecting significant operational challenges.
In comparison to its peers, Energy Focus, Inc. has a much higher EV to EBITDA ratio than Ocean Power Technologies, Inc. at -4.1982 and Flux Power Holdings, Inc. at -6.6737, further emphasizing its relative overvaluation. The company's stock has not shown favorable returns compared to the S&P 500, aligning with its risky valuation status.