Is Fuel Tech, Inc. overvalued or undervalued?

As of 10 May 2022, the valuation grade for Fuel Tech, Inc. changed from fair to risky, indicating a shift towards a more negative outlook. The company appears to be overvalued given its financial metrics, particularly with a Price to Book Value of 1.45 and a troubling EV to EBIT of -9.68. Additionally, the ROCE stands at -20.09%, which highlights ongoing operational challenges.
In comparison to its peers, Fuel Tech, Inc. has a significantly lower P/E ratio of -28.46, while Flexible Solutions International, Inc. demonstrates a more favorable P/E of 30.09, indicating a stark contrast in valuation. The company has outperformed the S&P 500 in recent periods, with a remarkable YTD return of 216.19% compared to the index's 12.22%, but this does not negate the concerning valuation metrics. Overall, Fuel Tech, Inc. is assessed as overvalued based on its current financial ratios and peer comparisons.