Is Inno Holdings, Inc. overvalued or undervalued?

As of 2 May 2025, Inno Holdings, Inc. has moved from a valuation grade of does not qualify to risky. The company is currently overvalued, indicated by its troubling financial ratios, including a Price to Book Value of 1.18, an EV to EBIT of -1.38, and an EV to EBITDA of -1.41. These figures reflect significant operational challenges, particularly the negative returns on capital employed and equity, with ROCE at -101.30% and ROE at -76.91%.
When comparing Inno Holdings to its peers, it stands out with a P/E ratio of -1.6446 and an EV to EBITDA of -1.5898, which are significantly worse than the industry averages. This suggests that the market is pricing the stock higher than its fundamental value, especially considering the company's substantial decline in stock performance, with a year-to-date return of -70.46% compared to a modest 2.44% return from the S&P 500. Overall, the financial metrics and peer comparisons indicate that Inno Holdings is not a viable investment at its current valuation.