Is Perma-Fix Environmental Services, Inc. overvalued or undervalued?
As of May 9, 2024, Perma-Fix Environmental Services, Inc. is considered a risky investment due to its overvaluation indicated by a high Price to Book Value of 3.08, negative EV to EBIT and EV to EBITDA ratios, and poor ROCE and ROE figures, alongside underperformance compared to the S&P 500.
As of 9 May 2024, the valuation grade for Perma-Fix Environmental Services, Inc. has moved from fair to risky, indicating a deterioration in its investment appeal. The company appears to be overvalued, given its high Price to Book Value of 3.08 and negative EV to EBIT and EV to EBITDA ratios of -10.68 and -12.11, respectively. Additionally, the latest ROCE and ROE figures are concerning at -41.20% and -33.13%, highlighting significant inefficiencies.In comparison to its peers, Perma-Fix's EV to EBITDA ratio of -12.11 is worse than 374Water, Inc. at -3.84 and Quest Resource Holding Corp. at 25.06, both of which indicate a challenging environment for the company. Over the past year, Perma-Fix has underperformed the S&P 500, with a return of -16.43% compared to the index's 17.14%, further supporting the view that the stock is currently overvalued.
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