Is iPower, Inc. overvalued or undervalued?

As of 14 November 2022, the valuation grade for iPower, Inc. moved from fair to risky, indicating a deteriorating outlook. The company appears to be overvalued given its current financial metrics, including a Price to Book Value of 0.99, an EV to EBITDA ratio of 20.90, and a negative ROCE of -4.57%. Comparatively, peers such as ContextLogic, Inc. and Torrid Holdings, Inc. have P/E ratios of -16.32 and 52.14, respectively, highlighting the relative weakness of iPower's valuation.
The stock has significantly underperformed against the S&P 500, with a year-to-date return of -33.96% compared to the index's 12.22%. This performance, alongside the company's negative financial ratios, reinforces the conclusion that iPower, Inc. is currently overvalued.