Is Ispire Technology, Inc. overvalued or undervalued?

As of 18 September 2023, the valuation grade for Ispire Technology, Inc. has moved from does not qualify to risky. The company appears to be overvalued based on its financial metrics, particularly given its negative P/E ratio and a Price to Book Value of 10.32. Additionally, the EV to EBITDA stands at -5.69, indicating significant operational challenges, while the ROE is a concerning -188.51%.
In comparison to its peer, PlayAGS, Inc., which has an attractive P/E of 10.90 and an EV to EBITDA of 6.74, Ispire's metrics highlight its struggles in the market. The company's stock has underperformed significantly, with a year-to-date return of -51.09% compared to a modest 2.44% return for the S&P 500. Overall, Ispire Technology, Inc. is currently overvalued and faces substantial headwinds in its financial performance.