Is Natural Alternatives International, Inc. overvalued or undervalued?

As of 13 February 2024, the valuation grade for Natural Alternatives International, Inc. has moved from expensive to risky, indicating a deteriorating outlook. The company appears to be overvalued given its significant losses and negative return metrics. Key ratios include a Price to Book Value of 0.42, an EV to Sales ratio of 0.28, and an EV to EBITDA of -7.72, all of which suggest that the company's valuation does not align well with its financial performance.
In comparison to its peers, Natural Alternatives International, Inc. has a much lower EV to EBITDA ratio than Chromadex Corp. at 36.5633 and USANA Health Sciences, Inc. at 4.7297, both of which are categorized as expensive. The company's stock has underperformed significantly against the S&P 500, with a 1-year return of -49.46% compared to the index's 17.14%, reinforcing the notion of its overvaluation.