Is Mega Matrix Corp. overvalued or undervalued?

As of 8 May 2024, the valuation grade for Mega Matrix Corp. has moved from does not qualify to risky, indicating a significant shift in its financial outlook. The company is currently assessed as overvalued given its troubling financial metrics, including a Price to Book Value of 1.77 and an EV to Sales ratio of 1.16, despite being loss-making with a P/E ratio that is not applicable. The ROCE stands at a concerning -150.69%, and the ROE is also negative at -27.32%, highlighting inefficiencies in generating returns for shareholders.
In comparison to its peers, Mega Matrix Corp. lags significantly behind companies such as Finance of America Cos., Inc., which has a P/E ratio of 168.54, and Security National Financial Corp., with a P/E of 10.10. These comparisons further reinforce the notion that Mega Matrix is overvalued in its current state. Additionally, the company's stock has underperformed against the S&P 500 over the past year, with a return of -55.71% compared to the index's 10.26%, suggesting that investor sentiment is not favorable.