Is Inuvo, Inc. overvalued or undervalued?

As of 26 October 2016, the valuation grade for Inuvo, Inc. moved from expensive to risky, indicating a shift in perception regarding its financial health. Based on the available metrics, the company appears to be overvalued, particularly given its negative P/E ratio and poor returns on capital, with a ROCE of -46.50% and ROE of -36.51%. The Price to Book Value stands at 4.29, which suggests that investors are paying a premium for the company's equity despite its losses.
Inuvo, Inc. is compared to peers such as Duos Technologies Group, Inc. with an EV to EBITDA of -19.09 and Aware, Inc. with an EV to EBITDA of -5.72, both of which highlight the challenging environment in which Inuvo operates. The company's stock has underperformed against the S&P 500 across multiple time frames, with a year-to-date return of -46.63% compared to the index's 12.22%, reinforcing the notion that Inuvo is currently overvalued.