Is ENGlobal Corp. overvalued or undervalued?

As of 11 March 2021, ENGlobal Corp. moved from expensive to risky, indicating a significant downgrade in its valuation outlook. The company appears to be overvalued given its negative valuation ratios, including a Price to Book Value of -0.02, an EV to EBIT of -0.44, and an EV to EBITDA of -0.54. These figures suggest that the company's financial performance is not only weak but also that it is trading at a premium relative to its underlying value.
In comparison to its peers, ENGlobal Corp. has a P/E ratio of -0.0129, while Forum Energy Technologies, Inc. shows a P/E of 25.3080 and Ranger Energy Services, Inc. has a more favorable P/E of 12.4731, highlighting the disparity in valuation within the industry. The overall peer comparison indicates that ENGlobal Corp. is positioned unfavorably against its competitors, many of whom are classified as risky or attractive. Although return data is not available for a direct comparison with the S&P 500, the company's current valuation metrics reinforce the notion that it is overvalued in its current state.