Is IRIDEX Corp. overvalued or undervalued?

As of 3 November 2016, the valuation grade for IRIDEX Corp. moved from expensive to risky, indicating a deterioration in its valuation outlook. The company appears to be overvalued based on its current financial metrics. Key ratios include a Price to Book Value of 16.34, an EV to EBIT of -3.81, and an EV to EBITDA of -5.21, all of which suggest significant challenges in profitability and valuation.
In comparison to its peers, IRIDEX Corp. has a notably negative EV to EBITDA ratio of -10.2048, while Kewaunee Scientific Corp. stands out with a more favorable P/E of 13.9568. Other risky peers like iCAD, Inc. and Sensus Healthcare, Inc. also reflect poor valuation metrics, further highlighting IRIDEX's struggles within its industry. Although specific return data is not available, the lack of positive performance against the S&P 500 reinforces the notion of the company's overvaluation amidst its financial difficulties.