Is Hurco Cos., Inc. overvalued or undervalued?

As of 7 June 2024, the valuation grade for Hurco Cos., Inc. moved from expensive to risky, indicating a deterioration in its valuation outlook. The company appears to be overvalued given its negative financial metrics, including a Price to Book Value of 0.45, an EV to EBITDA of -11.80, and an ROE of -8.29%. Compared to peers, Hurco's valuation ratios are significantly weaker; for instance, Graham Corp. has a P/E ratio of 41.09, while Hurco's valuation remains unquantifiable due to its loss-making status.
In terms of stock performance, Hurco has underperformed relative to the S&P 500 across multiple periods, with a year-to-date return of -10.06% compared to the S&P 500's 12.22%. This trend reinforces the notion that Hurco is currently overvalued in the market.