Is Natural Health Trends Corp. overvalued or undervalued?

As of 10 February 2021, the valuation grade for Natural Health Trends Corp. moved from risky to very attractive, indicating a significant improvement in its perceived value. Despite this positive change, the company appears to be overvalued based on its current financial ratios. The P/E ratio stands at 62, significantly higher than the peer average of approximately 60.78 for companies like Olaplex Holdings, Inc. and Nu Skin Enterprises, Inc., which have P/E ratios of 76.71 and 3.95, respectively. Additionally, the EV to EBITDA ratio of -18.13 and a PEG ratio of 30.35 further highlight the company's inflated valuation relative to its peers.
In conclusion, Natural Health Trends Corp. is currently overvalued given its high P/E ratio and negative EV metrics, despite the recent upgrade in its valuation grade. The company's return performance has also lagged behind the S&P 500, with a 1-year return of -34.62% compared to the index's 10.26%, reinforcing the notion that the stock may not be a favorable investment at this time.