Is IT Tech Packaging, Inc. overvalued or undervalued?

As of 10 November 2022, the valuation grade for IT Tech Packaging, Inc. has moved from attractive to risky, indicating a significant deterioration in its financial outlook. The company appears to be overvalued, particularly given its negative P/E ratio and low price-to-book value of 0.02, alongside an EV to EBITDA ratio of 1.31, which suggests that the market may not be pricing in the risks associated with its financial performance.
In comparison to its peers, Karat Packaging, Inc. shows a very attractive P/E ratio of 15.53 and an EV to EBITDA of 8.15, highlighting a stark contrast in valuation metrics. Ranpak Holdings Corp. and Connexa Sports Technologies, Inc. also exhibit risky valuations, with EV to EBITDA ratios of 18.74 and -11.42, respectively. The stock has underperformed significantly against the S&P 500, with a year-to-date return of -63.49% compared to the index's 12.22%, reinforcing the notion that IT Tech Packaging, Inc. is currently overvalued.