Is FlexShopper, Inc. overvalued or undervalued?

As of 10 February 2025, the valuation grade for FlexShopper, Inc. has moved from expensive to risky, indicating a more cautious outlook on the company's financial health. The company appears to be overvalued based on its current metrics, particularly given its significant losses reflected in the P/E ratio, which is not applicable due to losses, and a Price to Book Value of 0.89, suggesting it is trading below its book value. Additionally, the EV to EBITDA ratio stands at 0.41, which, while low, indicates that the company is not generating sufficient earnings relative to its enterprise value.
In comparison to peers, FlexShopper's EV to EBITDA ratio of 0.41 is notably lower than that of Finance of America Cos., Inc., which has a ratio of 0.2102, indicating a more favorable valuation. Meanwhile, loanDepot, Inc. shows a much higher EV to EBITDA at 3.7049, further emphasizing FlexShopper's relative weakness in profitability metrics. Recent stock performance shows that while FlexShopper gained 10.54% over the past week, it has significantly underperformed the S&P 500 over longer periods, with a year-to-date return of -55.54% compared to the S&P 500's 12.22%, reinforcing the notion that the stock is overvalued in light of its financial struggles.