Is LM Funding America, Inc. overvalued or undervalued?

As of 31 March 2023, LM Funding America, Inc. has moved from a grade of "does not qualify" to "risky." The company's valuation is considered overvalued given its current financial metrics. Key ratios include a Price to Book Value of 0.32, an EV to EBIT of -0.05, and a ROCE of -63.03%.
In comparison to peers, LM Funding's P/E ratio is significantly negative at -0.5912, while SilverSun Technologies, Inc., categorized as attractive, boasts a P/E ratio of 318.49. Other peers such as Greenwave Technology Solutions, Inc. also show a negative P/E of -0.3054, reinforcing the risk associated with LM Funding. The company's stock has underperformed significantly against the S&P 500 over various periods, including a staggering -96.39% return over the last five years, further indicating its overvaluation in the current market context.