Is Interlink Electronics, Inc. overvalued or undervalued?

As of 21 March 2024, the valuation grade for Interlink Electronics, Inc. has moved from fair to risky, indicating a shift towards a more negative outlook. The company appears to be overvalued given its high Price to Book Value of 6.05 and negative EV to EBIT and EV to EBITDA ratios of -26.47 and -44.69, respectively. Additionally, the latest ROCE and ROE are significantly negative at -28.50% and -20.97%, highlighting ongoing financial challenges.
In comparison to its peers, Interlink Electronics shows a stark contrast with Kopin Corp., which has a less negative EV to EBITDA of -24.41, and Transphorm, Inc. with -10.94, suggesting that Interlink is underperforming relative to its industry. The absence of return data makes it difficult to compare its performance against the S&P 500, but the overall valuation metrics reinforce the notion that the stock is overvalued in its current state.