Is Knightscope, Inc. overvalued or undervalued?

As of 15 August 2022, Knightscope, Inc. has moved from a grade of "does not qualify" to "risky," indicating a significant downgrade in its valuation outlook. The company is currently assessed as overvalued, primarily due to its negative financial metrics. The P/E ratio is not applicable as the company is loss-making, while the Price to Book Value stands at 2.38. Additionally, the EV to EBITDA ratio is -1.44, reflecting substantial operational challenges.
In comparison to its peers, Knightscope's valuation appears unfavorable. For instance, Graham Corp. has a P/E ratio of 45.56, and Natural Gas Services Group, Inc. has a fair valuation with a P/E of 18.93, highlighting the stark contrast in financial health and market perception. The company's recent stock performance has been poor, with a year-to-date return of -59.83%, significantly underperforming the S&P 500, which has returned 2.44% in the same period. This further reinforces the notion that Knightscope, Inc. is overvalued in the current market environment.