Is PAR Technology Corp. overvalued or undervalued?

As of 15 March 2018, PAR Technology Corp. has moved from a fair to a risky valuation grade. The company appears to be overvalued given its current financial metrics, particularly with a Price to Book Value of 3.26 and an EV to Sales ratio of 8.03, which are significantly higher than typical industry benchmarks. Additionally, the negative ROCE of -5.34% and ROE of -8.83% indicate poor profitability and efficiency, further supporting the overvaluation stance.
In comparison to peers, PAR Technology Corp. has a P/E ratio of -34.42 and an EV to EBITDA of -152.00, which are substantially worse than industry averages. This suggests that the market is pricing the stock at a premium despite its financial struggles. While the stock has outperformed the S&P 500 over the past year with a return of 53.56% compared to 10.26%, the underlying financial ratios indicate that the current valuation is not justified, reinforcing the conclusion that the company is overvalued.