Is Forian, Inc. overvalued or undervalued?

As of 13 November 2024, the valuation grade for Forian, Inc. has moved from fair to risky, indicating a shift towards a more negative outlook. The company appears to be overvalued given its current financial metrics, including a Price to Book Value of 2.14, an EV to Sales ratio of 1.58, and an alarming ROCE of -466.70%. In comparison to peers, Forian's EV to EBITDA stands at -6.72, significantly worse than Spire Global, Inc. at -8.2383 and SecureWorks Corp. at -3.4166, both of which also carry a risky valuation.
While Forian has shown some short-term resilience with a 1-month stock return of 17.86% compared to the S&P 500's 2.33%, its longer-term performance is concerning, particularly with a 3-year return of -43.66% versus the S&P 500's 70.41%. This suggests that despite recent gains, the overall valuation remains precarious, reinforcing the conclusion that Forian, Inc. is overvalued in the current market context.