Is FTAC Emerald Acquisition Corp. overvalued or undervalued?

As of 15 May 2025, the valuation grade for FTAC Emerald Acquisition Corp. has moved from does not qualify to risky. The company appears to be overvalued based on its financial metrics, particularly given its negative P/E ratio and troubling returns on capital. Key ratios include a Price to Book Value of 2.82, an EV to EBIT of -49.46, and an EV to Sales of 35.07, which indicate significant financial distress.
In comparison to its peers, FTAC Emerald Acquisition Corp. has a P/E ratio of -9.97, while Hennessy Capital Investment Corp. VI shows a much worse P/E of -157.16, and Kensington Capital Acquisition Corp. V has a more favorable P/E of 18.78. The company's recent stock performance has been poor, with a year-to-date return of -59.73%, contrasting sharply with the S&P 500's gain of 2.44% during the same period, reinforcing the notion that the stock is overvalued.