Is Geospace Technologies Corp. overvalued or undervalued?

As of 21 November 2024, the valuation grade for Geospace Technologies Corp. has moved from attractive to risky, indicating a significant shift in its financial outlook. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 0.68 and an EV to EBITDA ratio of 6.29, which, while not excessively high, does not compensate for the negative earnings and returns. The ROCE stands at -0.79%, and the ROE is at -10.21%, highlighting ongoing financial struggles.
In comparison to its peers, Geospace Technologies Corp. has a P/E ratio that is not applicable due to its loss-making status, while Dril-Quip, Inc. boasts a P/E of 14.45 and is rated very attractive. ProPetro Holding Corp., also rated risky, has a P/E of 12.36, further emphasizing the challenges faced by Geospace. Given these ratios and the company's recent performance, which has outpaced the S&P 500 in the short term but remains overshadowed by its fundamental weaknesses, the overall assessment is that Geospace Technologies Corp. is overvalued.