Is Greenpro Capital Corp. overvalued or undervalued?

As of 13 August 2024, the valuation grade for Greenpro Capital Corp. has moved from fair to risky, indicating a deterioration in its investment appeal. The company appears to be overvalued, particularly given its negative earnings metrics and poor return ratios. Key valuation ratios include a Price to Book Value of 1.94, an EV to EBIT of -6.75, and an EV to EBITDA of -8.00, all of which suggest significant financial distress.
In comparison to its peers, Greenpro Capital Corp. has a notably lower EV to EBITDA ratio than Hennessy Advisors, Inc., which stands at 1.7811, highlighting the challenges Greenpro faces in generating earnings relative to its enterprise value. Additionally, Logan Ridge Finance Corp. and Rand Capital Corp. also exhibit risky valuations with negative earnings ratios, further emphasizing the struggles within this sector. Over the past year, Greenpro Capital Corp. has outperformed the S&P 500 with a return of 36.22% compared to the index's 17.14%, but this does not mitigate the underlying valuation concerns.