Is Nuburu, Inc overvalued or undervalued?

As of 8 July 2024, Nuburu, Inc. has moved from a risky to a does not qualify valuation grade. The company is overvalued given its negative valuation ratios, including a Price to Book Value of -0.52 and an EV to EBITDA of -3.90. Additionally, its EV to Sales ratio stands at 46.69, indicating a significant premium despite the lack of profitability.
In comparison to peers, Nuburu's P/E ratio is -0.6953, while Espey Manufacturing & Electronics Corp. shows a much more favorable P/E of 21.9930, highlighting the disparity in valuation within the industry. Other peers like Vishay Precision Group, Inc. and Methode Electronics, Inc. also reflect riskier valuations with their respective negative ratios. Furthermore, Nuburu's stock has underperformed significantly against the S&P 500, with a year-to-date return of -78.0% compared to the index's 12.22%, reinforcing the notion that the company is overvalued.