Is Forward Industries, Inc. overvalued or undervalued?

As of 27 December 2024, the valuation grade for Forward Industries, Inc. has moved from fair to risky, indicating a significant deterioration in its financial standing. The company is currently considered overvalued, particularly given its negative P/E ratio and troubling returns on capital. Key ratios include a Price to Book Value of 2.03, an EV to EBIT of -2.09, and an EV to EBITDA of -2.34, all of which reflect the company's struggles to generate positive earnings.
In comparison to its peers, Forward Industries, Inc. stands out negatively against Movado Group, Inc., which has a P/E of 21.12 and an EV to EBITDA of 7.96, indicating a much stronger valuation position. Other peers like Fossil Group, Inc. and Duluth Holdings, Inc. also reflect risky valuations, with EV to EBITDA ratios of 25.47 and -37.18 respectively. Notably, Forward Industries has underperformed against the S&P 500 over various time frames, including a 1-month decline of 21.70% compared to a 3.83% gain for the index, further reinforcing its overvalued status.