Is FGI Industries Ltd. overvalued or undervalued?

As of 11 November 2024, the valuation grade for FGI Industries Ltd. has moved from very expensive to risky, indicating a significant shift in the company's perceived value. The company is currently considered overvalued, given its troubling financial ratios, including a Price to Book Value of 0.32, an EV to EBITDA of -18.86, and a ROCE of -8.68%. These figures highlight the company's struggles, particularly as it remains loss-making with a P/E ratio that is not applicable.
In comparison to its peers, FGI Industries Ltd. stands out negatively. For instance, Interface, Inc. has a P/E ratio of 14.09 and an EV to EBITDA of 7.99, while Apogee Enterprises, Inc. shows a P/E of 8.57 and an EV to EBITDA of 6.14, both indicating more favorable valuations. Additionally, FGI's recent stock performance has underperformed significantly against the S&P 500, with a year-to-date return of -23.82% compared to the index's 2.44%. This combination of poor financial metrics and lackluster stock performance reinforces the conclusion that FGI Industries Ltd. is overvalued in the current market.