Is Forian, Inc. overvalued or undervalued?

As of 13 November 2024, Forian, Inc. has moved from an expensive to a risky valuation grade. The company is currently assessed as overvalued, particularly given its troubling financial ratios. The Price to Book Value stands at 2.14, while the EV to Sales ratio is at 1.58. Notably, the company has a negative ROCE of -466.70% and a negative ROE of -8.78%, indicating significant operational challenges.
In comparison to its peers, Forian's valuation metrics are concerning. For instance, Spire Global, Inc. has a P/E ratio of -3.7365 and an EV to EBITDA of -9.0960, while Viant Technology, Inc. is in a fair position with a P/E of 57.1519 and an EV to EBITDA of 28.1557. The stark contrast in these ratios highlights Forian's precarious financial standing. Additionally, while Forian has shown a slight positive return over the past month, its one-year performance has declined by 18.49%, significantly underperforming the S&P 500, which gained 10.26% in the same period.