Is Paltalk, Inc. overvalued or undervalued?

As of 10 May 2022, Paltalk, Inc. has moved from an attractive to a risky valuation grade, indicating a significant deterioration in its financial outlook. The company is currently considered overvalued given its negative earnings and troubling financial ratios. Key ratios include a Price to Book Value of 0.93, an EV to EBIT of -2.14, and an EV to EBITDA of -3.14, all of which reflect an unfavorable financial position.
In comparison to its peers, Paltalk's P/E ratio is -8.43, while Phunware, Inc. has a P/E of -5.46 and BM Technologies, Inc. stands at -4.97, highlighting that Paltalk is underperforming relative to similar companies in the sector. The company's recent stock performance has also been poor, with a 1-year return of -54.91%, significantly lagging behind the S&P 500's 10.26% return over the same period. Overall, the combination of negative financial metrics and poor stock performance suggests that Paltalk, Inc. is overvalued at its current price of $1.93.