Is JanOne, Inc. overvalued or undervalued?

As of 19 August 2024, the valuation grade for JanOne, Inc. has moved from does not qualify to risky, indicating a significant shift in its perceived financial stability. The company is currently assessed as overvalued. Key ratios reflect this concern, with a Price to Book Value of 6.94, an EV to EBIT of -22.91, and an EV to EBITDA of -64.96, all suggesting that the company's financial metrics are not aligned with its current market price.
In comparison to its peers, JanOne's performance appears weaker; for instance, Purecycle Technologies, Inc. has a P/E ratio of -13.14 and an EV to EBITDA of -25.52, while Enviri Corp. shows a more favorable EV to EBITDA of 9.48. Additionally, JanOne's negative ROCE of -27.30% and ROE of -24.06% further highlight its struggles relative to the industry. Despite a strong year-to-date stock return of 96.34%, the overall valuation metrics suggest that the stock is not justified at its current price level.