Is Motorsport Games, Inc. overvalued or undervalued?

As of 13 August 2025, the valuation grade for Motorsport Games, Inc. has moved from risky to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued, particularly when considering its current Price to Book Value of 16.12 and an EV to Sales ratio of 2.04, despite the negative metrics associated with its earnings. In comparison to peers, Motorsport Games has a P/E ratio of 8.88, which is more favorable than GigaMedia Ltd.'s 17.96, highlighting its relative attractiveness in the market.
While the company has experienced significant volatility, its year-to-date return of 108.51% far exceeds the S&P 500's 12.22%, suggesting strong market performance despite recent downturns. This performance, coupled with its attractive valuation grade, supports the conclusion that Motorsport Games, Inc. is currently undervalued in the software products industry.