Is NeoVolta, Inc. overvalued or undervalued?

As of 10 November 2022, the valuation grade for NeoVolta, Inc. moved from does not qualify to risky, indicating an increased concern regarding its financial stability. The company appears to be overvalued given its high Price to Book Value of 27.29 and negative metrics such as an EV to EBITDA of -26.31 and a ROE of -107.52%. Compared to peers, NeoVolta's P/E ratio of -32.18 is significantly worse than SKYX Platforms Corp. at -3.59 and Beam Global at -2.51, highlighting its relative underperformance.
In terms of recent stock performance, NeoVolta has outperformed the S&P 500 over the past year with a return of 65.4% compared to 17.14%. However, the long-term returns are concerning, with a 5-year return of 30.58% versus the S&P 500's 96.61%, suggesting that while there may be short-term gains, the overall valuation does not justify the current price level.