Is Interlink Electronics, Inc. overvalued or undervalued?

As of 21 March 2024, the valuation grade for Interlink Electronics, Inc. has moved from expensive to risky, indicating a significant shift in perception. The company appears to be overvalued given its financial metrics, with a Price to Book Value of 6.05, an EV to EBIT of -26.47, and an EV to EBITDA of -44.69. These ratios suggest that the company is struggling to generate positive earnings, which is further supported by a Return on Capital Employed (ROCE) of -28.50% and a Return on Equity (ROE) of -20.97%.
In comparison to its peers, Interlink Electronics is underperforming. For instance, Aeva Technologies, Inc. has a less negative EV to EBITDA of -10.25, while Transphorm, Inc. stands at -10.94, both indicating relatively better financial health. Given these factors, Interlink Electronics, Inc. is deemed overvalued in the current market context.