Is Nortech Systems, Inc. overvalued or undervalued?

As of 31 March 2025, Nortech Systems, Inc. has moved from an attractive to a risky valuation grade. The company is currently overvalued given its financial metrics and peer comparisons. Key ratios include a price to book value of 0.75, an EV to EBITDA of -37.33, and a return on equity (ROE) of -7.77%.
In comparison to its peers, Nortech Systems has a P/E ratio of -9.3759, while BioSig Technologies, Inc. shows a P/E of -14.5539, and LENSAR, Inc. has a P/E of -15.8090. These figures indicate that Nortech is not only underperforming relative to its peers but also reflects a concerning trend in profitability. Additionally, the company's stock has underperformed against the S&P 500 over the past year, with a return of -36.15% compared to the index's 10.26%.