Is Lesaka Technologies, Inc. overvalued or undervalued?

As of 7 February 2019, the valuation grade for Lesaka Technologies, Inc. has moved from attractive to risky, indicating a significant deterioration in its financial outlook. The company is currently considered overvalued, particularly given its P/E ratio is not applicable due to losses, while the Price to Book Value stands at 1.62, and its EV to EBITDA is at 16.90. The Return on Capital Employed (ROCE) is a mere 1.45%, and the Return on Equity (ROE) is negative at -1.01%, highlighting ongoing financial struggles.
In comparison to its peers, Lesaka Technologies shows a stark contrast with Red Violet, Inc., which has a P/E ratio of 77.67, indicating it is very expensive, and Bandwidth, Inc., which is also risky with a P/E of -33.99. The overall peer group reflects a challenging environment, with many companies categorized as risky. Additionally, Lesaka's stock has underperformed against the S&P 500, particularly over the last year, where it has declined by 16.57% compared to a 10.26% increase in the index.