Is Gulf Resources, Inc. overvalued or undervalued?

As of 20 November 2023, the valuation grade for Gulf Resources, Inc. has moved from expensive to risky, indicating a deterioration in its valuation outlook. The company appears to be overvalued given its significant negative financial metrics, including a Price to Book Value of 0.06, an EV to Sales ratio of 0.09, and an ROE of -31.16%.
In comparison to its peers, Gulf Resources, Inc. has a worse EV to EBITDA ratio of -0.21 than Rayonier Advanced Materials, Inc. at 6.8625 and Codexis, Inc. at -3.9373, highlighting its relative underperformance. Furthermore, the stock has underperformed against the S&P 500 over the past year, with a return of -34.61% compared to the index's 17.14%, reinforcing the notion that the stock is not only risky but also overvalued in its current state.