Is Quest Resource Holding Corp. overvalued or undervalued?

As of 16 May 2022, the valuation grade for Quest Resource Holding Corp. moved from fair to risky, indicating a deteriorating outlook. The company appears to be overvalued given its negative financial metrics, including a Price to Book Value of 1.02, an EV to EBITDA ratio of 17.81, and a ROE of -39.51%. In comparison, peers like Vertex Energy, Inc. have an EV to EBITDA of -35.6770, and 374Water, Inc. shows a significantly worse P/E ratio of -3.8964, highlighting the relative weakness of Quest Resource Holding Corp. within its industry.
The company's stock has significantly underperformed against the S&P 500, with a year-to-date return of -75.38% compared to the index's 12.22%. This stark contrast further reinforces the notion that the stock is overvalued in its current state.