Is GAN Ltd. overvalued or undervalued?

As of 25 March 2021, GAN Ltd. has moved from a grade of does not qualify to risky, indicating a significant shift in its valuation outlook. The company appears to be overvalued given its negative P/E ratio of -8.45 and a Price to Book Value of -5.45, which suggests that the market is pricing the stock higher than its actual book value. Additionally, the EV to EBITDA ratio stands at 22.49, which is considerably high compared to its peers.
In comparison, Gorilla Technology Group, Inc. has a more favorable P/E ratio of -5.80 and an EV to EBITDA of 17.00, while Vasta Platform Ltd. shows a very attractive valuation with a P/E of 4.44 and an EV to EBITDA of 4.40. These comparisons highlight that GAN Ltd. is not only underperforming against its peers but also carries significant risks, reinforcing the conclusion that it is overvalued. Despite a strong recent performance relative to the S&P 500, with a 1-year return of 48.12% compared to 10.26%, the underlying financial metrics suggest caution for potential investors.