Is Mesa Laboratories, Inc. overvalued or undervalued?

As of 5 June 2024, Mesa Laboratories, Inc. has moved from a fair to risky valuation grade. The company appears to be overvalued, particularly given its significant losses reflected in the P/E ratio, which is not applicable due to the loss-making status. Key ratios include a Price to Book Value of 3.55, an EV to EBITDA of 17.66, and an EV to Sales of 2.99, all indicating a high valuation relative to its financial performance.
In comparison to peers, Mesa Laboratories has a notably high EV to EBITDA ratio compared to Atrion Corp. at 26.22, and a significantly worse P/E ratio than Silk Road Medical, Inc. at -19.76. The company's recent stock performance has been poor, with a year-to-date return of -47.55%, contrasting sharply with the S&P 500's positive return of 12.22% over the same period, further reinforcing the overvaluation narrative.