Is Focus Universal, Inc. overvalued or undervalued?

As of 15 November 2022, the valuation grade for Focus Universal, Inc. moved from risky to does not qualify, indicating significant concerns regarding its financial health. The company is currently overvalued, given its P/E ratio is not applicable due to losses, and it has a Price to Book Value of 15.35. Additionally, the EV to EBITDA stands at -4.24, and the ROE is a staggering -163.06%, reflecting severe inefficiencies in generating returns on equity.
In comparison to peers, Focus Universal, Inc. shows a stark contrast with QuinStreet, Inc. which has a P/E ratio of 357.48, and Thryv Holdings, Inc. at 38.55, both of which are categorized as risky but demonstrate more favorable valuations. The company's recent stock performance has outpaced the S&P 500 over the past year, returning 55.60% compared to the index's 10.26%, but this does not mitigate the underlying valuation concerns. Overall, the financial metrics suggest that Focus Universal, Inc. is not a viable investment at its current price of 3.89.