Is Network-1 Technologies, Inc overvalued or undervalued?

As of 28 February 2025, the valuation grade for Network-1 Technologies, Inc. has moved from risky to does not qualify, indicating a significant deterioration in its financial standing. The company is currently overvalued, given its negative earnings and troubling financial ratios. The Price to Book Value stands at 0.65, while the EV to EBITDA is at 3.58, both of which suggest that the company's valuation metrics are not favorable compared to its peers.
In comparison to its peers, Longboard Pharmaceuticals, Inc. has a P/E ratio of -27.04, and FONAR Corp. is considered attractive with a P/E of 8.12 and an EV to EBITDA of 2.16. Network-1's financial performance is concerning, as evidenced by its negative ROE of -5.80% and a staggering dividend yield of 852.39%, which may not be sustainable. The company's stock has underperformed against the S&P 500 over the past year, with a return of -18.99% compared to the index's 10.26%, reinforcing the view that it is currently overvalued.