Is Flux Power Holdings, Inc. overvalued or undervalued?

As of 13 February 2018, the valuation grade for Flux Power Holdings, Inc. moved from does not qualify to risky, indicating a deterioration in its investment appeal. The company appears to be overvalued given its negative valuation ratios, including a Price to Book Value of -5.96, an EV to EBIT of -5.83, and an EV to EBITDA of -6.88. In comparison to peers, Flux Power's EV to EBITDA ratio is significantly better than NeoVolta, Inc. at -33.27, but worse than CBAK Energy Technology, Inc. at -14.58, highlighting its relative weakness in the industry.
Despite a strong short-term performance with a 62.66% year-to-date return compared to the S&P 500's 12.22%, the long-term outlook remains bleak, as evidenced by a -59.08% return over five years versus the S&P 500's 96.61%. This suggests that while there may be short-term gains, the overall valuation and financial health of Flux Power Holdings, Inc. do not support a favorable investment case at this time.