Is Flux Power Holdings, Inc. overvalued or undervalued?

As of 13 February 2018, the valuation grade for Flux Power Holdings, Inc. has moved from does not qualify to risky, indicating a significant deterioration in its financial standing. The company is currently assessed as overvalued, given its troubling financial metrics. The Price to Book Value stands at -5.96, while the EV to EBITDA is at -6.88, both of which are alarming indicators of financial distress. Additionally, the Return on Capital Employed (ROCE) is a staggering -82.07%, highlighting the inefficiency in generating returns from its capital.
In comparison to its peers, Flux Power's P/E ratio is -3.1349, while Arbe Robotics Ltd. has a P/E of -2.9888, and SKYX Platforms Corp. shows a P/E of -3.5193, all reflecting the challenges faced by companies in this sector. The company's recent stock performance has been notably poor, with a one-year return of -56.51%, significantly underperforming the S&P 500's gain of 10.26% over the same period. This combination of negative financial ratios and poor market performance reinforces the conclusion that Flux Power Holdings, Inc. is overvalued at its current price of $1.37.