Is Orion Energy Systems, Inc. overvalued or undervalued?

As of 8 November 2022, the valuation grade for Orion Energy Systems, Inc. moved from fair to risky, indicating a significant deterioration in its financial outlook. The company is currently assessed as overvalued given its negative earnings and poor return metrics. Key ratios include a Price to Book Value of 1.71, an EV to EBIT of -5.53, and an EV to EBITDA of -9.89, all of which reflect the company's challenging financial position.
In comparison to its peers, Orion's P/E ratio is not applicable due to losses, while its EV to EBITDA ratio of -9.89 is worse than that of Satixfy Communications Ltd. at -14.7472 and Intevac, Inc. at -1.4985. These comparisons highlight that Orion is not only struggling within its industry but also facing significant valuation challenges relative to its competitors. Overall, the company's financial metrics suggest it is overvalued in the current market environment.