Is Quantum Fintech Acquisition Corp. overvalued or undervalued?

As of 28 May 2024, the valuation grade for Quantum Fintech Acquisition Corp. has moved from does not qualify to risky, indicating a significant deterioration in its financial standing. The company is currently assessed as overvalued given its troubling financial ratios, including a P/E ratio of 0, a Price to Book Value of -0.02, and an EV to EBITDA of -0.32. These figures suggest a lack of profitability and negative equity, which are concerning for potential investors.
When compared to peers such as Power & Digital Infrastructure Acquisition II Corp. with a P/E of -24.29 and Tristar Acquisition I Corp. with a P/E of 16.66, Quantum Fintech's ratios highlight its precarious position in the market. The company's stock has also underperformed significantly, with a year-to-date return of -98.02% compared to a modest 2.44% return for the S&P 500. Overall, the combination of negative financial metrics and poor stock performance leads to the conclusion that Quantum Fintech Acquisition Corp. is overvalued at its current price of $0.19.