Is IRIDEX Corp. overvalued or undervalued?

As of 3 November 2016, the valuation grade for IRIDEX Corp. has moved from very expensive to risky. The company appears to be overvalued given its current financial metrics. The P/E ratio is not applicable due to losses, while the Price to Book Value stands at 16.34, and the EV to EBITDA is at -5.21, indicating significant operational challenges.
In comparison to its peers, Kewaunee Scientific Corp. has a more favorable P/E ratio of 5.90 and an EV to EBITDA of 7.23, positioning it as attractive, while iCAD, Inc. also falls into the risky category with a P/E of -19.95. The stark contrast in valuation metrics suggests that IRIDEX Corp. is not only overvalued but also faces considerable financial difficulties, as evidenced by its ROCE of -119.28% and ROE of -713.20%.