Is Hanryu Holdings, Inc. overvalued or undervalued?

As of 8 July 2024, the valuation grade for Hanryu Holdings, Inc. has moved from risky to does not qualify. The company appears to be overvalued given its financial metrics, particularly with a Price to Book Value of 0.99 and an EV to Sales ratio of 5.61, which suggests a high valuation relative to its sales. Additionally, the EV to EBITDA ratio stands at -4.04, indicating significant losses compared to its earnings before interest, taxes, depreciation, and amortization.
In comparison to peers, Domo, Inc. has a P/E ratio of -9.37 and an EV to EBITDA of -31.38, while Inspired Entertainment, Inc. shows a more favorable EV to EBITDA of 6.48 but still operates in a risky valuation category. The recent stock performance has been poor, with Hanryu Holdings experiencing a year-to-date return of -49.85%, significantly underperforming the S&P 500, which has returned 12.22% in the same period. This further reinforces the conclusion that Hanryu Holdings is currently overvalued.