Is GigCapital5, Inc. overvalued or undervalued?

As of 10 May 2024, the valuation grade for GigCapital5, Inc. has moved from does not qualify to risky, indicating a significant shift in its perceived investment quality. The company appears to be overvalued based on its negative valuation ratios, including a Price to Book Value of -1.06, an EV to EBIT of -2.98, and an EV to EBITDA of -3.05, which suggest that the market is pricing the stock unfavorably compared to its financial performance.
In comparison to its peers, GigCapital5, Inc. has a worse EV to EBITDA ratio than InFinT Acquisition Corp. at -2.9579 and Vahanna Tech Edge Acquisition I Corp. at -2.7630, both of which are also classified as risky. Despite a remarkable year-to-date return of 408.2%, which significantly outpaces the S&P 500's 12.22%, the long-term performance over three years shows a decline of 75.47%, reinforcing concerns about its sustainability and valuation.