Is Lesaka Technologies, Inc. overvalued or undervalued?

As of 7 February 2019, the valuation grade for Lesaka Technologies, Inc. moved from expensive to risky, indicating a deterioration in its valuation outlook. The company appears to be overvalued, particularly given its negative P/E ratio and low return metrics. Key valuation ratios include a Price to Book Value of 1.62, an EV to EBITDA of 16.90, and an EV to Sales of 1.04, which suggest that the company's valuation is not justified by its financial performance.
In comparison to peers, Lesaka Technologies has a significantly negative P/E ratio of -174.56, while Red Violet, Inc. is very expensive with a P/E of 82.07, and Bandwidth, Inc. is also risky with a P/E of -42.64. The company's recent stock performance has been poor, with a year-to-date return of -23.30% compared to the S&P 500's return of 12.22%, reinforcing the notion that it is currently overvalued.