Is IT Tech Packaging, Inc. overvalued or undervalued?

As of 10 November 2022, the valuation grade for IT Tech Packaging, Inc. moved from very attractive to risky, indicating a significant deterioration in its financial outlook. The company is currently assessed as overvalued, given its troubling financial ratios, including a Price to Book Value of 0.02, an EV to EBITDA of 1.31, and a negative ROE of -6.22%. These figures suggest that the company is struggling to generate returns for its shareholders.
In comparison with peers, Karat Packaging, Inc. stands out with a P/E ratio of 17.07 and an EV to EBITDA of 9.43, reflecting a much healthier financial position. Conversely, Ranpak Holdings Corp. is also rated risky, with a P/E of -18.06 and an EV to EBITDA of 14.10, further emphasizing the challenges faced by IT Tech Packaging. The company's recent stock performance has been dismal, with a year-to-date return of -68.41%, starkly contrasting with the S&P 500's modest gain of 2.44%, which reinforces the notion of overvaluation amidst its ongoing financial struggles.