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 deterioration in its financial standing. The company appears to be overvalued given its negative P/E ratio and poor return metrics, with a Price to Book Value of 1.77 and an EV to Sales ratio of 1.16. Comparatively, loanDepot, Inc. has a more severe P/E ratio of -19.16, while Finance of America Cos., Inc. stands out with a very attractive P/E of 17.29, highlighting the relative weakness of Mega Matrix Corp. in its industry.
The company's recent stock performance shows a mixed picture; while it has outperformed the S&P 500 over the 1Y and 5Y periods with returns of 28.00% and 253.98%, respectively, it has underperformed in the short term with a 1M return of -36.76% compared to the S&P 500's 2.33%. Overall, given the concerning valuation ratios and recent performance trends, Mega Matrix Corp. is deemed overvalued.