Is Knightscope, Inc. overvalued or undervalued?

As of 15 August 2022, the valuation grade for Knightscope, Inc. moved from does not qualify to risky, indicating a significant downgrade in its investment appeal. The company appears to be overvalued given its financial metrics, with a Price to Book Value of 2.38, an EV to EBIT of -1.31, and an EV to Sales ratio of 3.17. In comparison, peers such as Graham Corp. and Natural Gas Services Group, Inc. have fair valuations with P/E ratios of 41.09 and 17.57, respectively, highlighting the disparity in valuation.
Knightscope's recent stock performance shows a 10.34% return over the past year, which is notably lower than the S&P 500's 17.14% return, reinforcing the notion that the stock may not be a favorable investment at its current price of 6.19. Given these factors, Knightscope, Inc. is assessed as overvalued in the current market context.