Is LENSAR, Inc. overvalued or undervalued?

As of 9 November 2020, LENSAR, Inc. has moved from a grade of "does not qualify" to "risky," indicating increased concerns about its valuation. The company appears to be overvalued given its current financial metrics, including a Price to Book Value of -18.68 and an EV to EBITDA ratio of -22.68, both of which highlight significant financial distress. Additionally, the negative ROCE and ROE further underscore the challenges the company faces.
In comparison to its peers, LENSAR's P/E ratio stands at -15.81, while Delcath Systems, Inc. has a much worse P/E of -509.51, and Neuronetics, Inc. is at -5.27. These figures suggest that LENSAR is not the worst performer in its peer group, but its negative valuation ratios indicate a lack of profitability and financial stability. Despite a strong 1-year stock return of 176.92% compared to the S&P 500's 10.26%, the underlying financial metrics suggest that LENSAR is overvalued in the current market environment.