Is Rekor Systems, Inc. overvalued or undervalued?

As of 15 May 2018, the valuation grade for Rekor Systems, Inc. has moved from does not qualify to risky, indicating a significant shift in its risk profile. The company appears to be overvalued, given its troubling financial metrics, including a Price to Book Value of 5.02 and a staggering ROE of -126.70%. Additionally, the EV to EBITDA ratio stands at -5.54, further highlighting the company's financial struggles.
In comparison to its peers, Rekor Systems, Inc. shows a stark contrast with Universal Technical Institute, Inc., which has a P/E of 31.55 and an EV to EBITDA of 13.60, indicating a much healthier valuation. Other peers like Willdan Group, Inc. are also positioned more favorably with a P/E of 34.31. The company's recent stock performance has been poor, with a year-to-date return of -28.21%, significantly underperforming the S&P 500's 2.44% return.