Is HNR Acquisition Corp. overvalued or undervalued?

As of 10 May 2024, HNR Acquisition Corp. has moved from a grade of "does not qualify" to "risky." The company is currently considered overvalued. Key ratios indicate significant financial distress, with a Price to Book Value of 0.49, an EV to EBIT of -15.29, and an EV to EBITDA of -44.56. The company's return on equity (ROE) stands at a staggering -85.68%, highlighting severe profitability issues.
In comparison to its peers, HNR Acquisition Corp. shows a P/E ratio of -0.73, while BurTech Acquisition Corp. also carries a risky valuation with a P/E of -8.56. Notably, Williams Rowland Acquisition Corp. is categorized as very expensive with a P/E of 87.65, indicating a stark contrast in valuation metrics across the sector. Over the past year, HNR Acquisition Corp. has underperformed significantly, with a stock return of -80.49% compared to the S&P 500's 10.26%, reinforcing the notion that the company is overvalued in its current state.