Is Redwire Corp. overvalued or undervalued?

As of 9 August 2021, Redwire Corp. has moved from a grade of "does not qualify" to "risky," indicating a significant shift in its valuation outlook. The company appears to be overvalued given its current financial metrics, particularly with a Price to Book Value of -21.09 and an EV to EBITDA of -61.64, which suggest severe financial distress. Additionally, the Return on Capital Employed (ROCE) stands at -31.30%, further highlighting the challenges the company faces.
In comparison to its peers, Redwire Corp. has a P/E ratio of -13.31, while Triumph Group, Inc. has a P/E of 29.93, and Astronics Corp. shows a P/E of 198.40, illustrating that Redwire is not only underperforming but also significantly lagging behind its competitors. The company's recent stock performance has been volatile, with a 1-week return of -25.33% compared to a minimal decline in the S&P 500, reinforcing the notion that Redwire is currently overvalued in the market.