Is iPower, Inc. overvalued or undervalued?

As of 14 November 2022, the valuation grade for iPower, Inc. moved from fair to risky, indicating a deterioration in its financial outlook. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 0.99 and an EV to Sales ratio of 0.32. The negative P/E ratio reflects its loss-making status, while the EV to EBITDA stands at 20.90, suggesting high valuation relative to earnings before interest, taxes, depreciation, and amortization.
In comparison to its peers, iPower's valuation is notably less favorable; for instance, The RealReal, Inc. has a P/E ratio of -8.65, and Torrid Holdings, Inc. shows a P/E of 51.02, highlighting the disparity in performance and market perception. Furthermore, iPower's ROCE and ROE are both negative, at -4.57% and -7.25% respectively, reinforcing concerns about its operational efficiency. Despite a recent uptick in stock performance relative to the S&P 500 over the past month, the overall trend indicates that iPower, Inc. is currently overvalued.