Is Gulf Resources, Inc. overvalued or undervalued?

As of 20 November 2023, Gulf Resources, Inc. has moved from an attractive to a risky valuation grade. The company is currently considered overvalued based on its financial metrics. Key ratios include a price to book value of 0.06, an EV to EBITDA of -0.21, and a return on equity (ROE) of -31.16%. These figures indicate significant financial distress and poor profitability.
In comparison to peers, Gulf Resources, Inc. has a P/E ratio of -0.1841, while Lightbridge Corp. shows a significantly worse P/E of -22.3339, and Rayonier Advanced Materials, Inc. has a P/E of -28.1461, both indicating challenges in profitability within the sector. Despite a recent surge in stock price, with a 1-week return of 39.98%, the overall long-term performance remains concerning, with a 1-year return of -38.15% compared to the S&P 500's 10.26%. This suggests that while there may be short-term fluctuations, the underlying financial health of Gulf Resources, Inc. remains weak, affirming its overvalued status.