Is PowerFleet, Inc. overvalued or undervalued?

As of 8 August 2023, PowerFleet, Inc. has moved from an attractive to a risky valuation grade, indicating a significant deterioration in its financial outlook. The company is currently overvalued, given its negative performance metrics and ratios. The P/E ratio is not applicable due to the company being loss-making, while the Price to Book Value stands at 1.38, and the EV to EBITDA is notably high at 72.98. Additionally, the ROCE and ROE are both negative at -3.29% and -9.85%, respectively.
In comparison to its peers, PowerFleet's valuation appears unfavorable; for instance, Clearfield, Inc. has a P/E ratio of -286.40, while AudioCodes Ltd. is more attractive with a P/E of 15.92. The company's recent stock performance has also lagged behind the S&P 500, with a year-to-date return of -32.73% compared to the index's 2.44%. Overall, the combination of weak financial ratios and poor relative performance suggests that PowerFleet, Inc. is overvalued in the current market.