Is Mega Matrix, Inc. overvalued or undervalued?

As of 28 March 2025, the valuation grade for Mega Matrix, Inc. moved from does not qualify to risky, indicating a shift in perception. The company appears to be overvalued given its negative P/E ratio of -7.15 and EV to EBITDA of -10.14, which suggest that it is not generating positive earnings relative to its valuation metrics.
When compared to peers, Mega Matrix, Inc. is underperforming, particularly against the industry average, which typically reflects more favorable ratios. Notably, the company's stock has shown a return of 28.00% over the past year, outperforming the S&P 500's 17.14%, but it has significantly lagged in the 3-year and 5-year periods, with returns of 33.33% and 253.98% compared to the S&P's 70.41% and 96.61%, respectively. This disparity reinforces the notion that the stock may be overvalued in the current market context.