Is Research Solutions, Inc. overvalued or undervalued?

As of 9 November 2023, the valuation grade for Research Solutions, Inc. has moved from fair to risky, indicating a shift towards a more negative outlook. The company appears to be overvalued based on its current metrics, particularly with a Price to Book Value of 8.01, an EV to EBIT of 43.38, and an EV to EBITDA of 25.94. In comparison, FONAR Corp., which is rated fair, has a P/E ratio of 8.9956 and an EV to EBITDA of 2.7084, highlighting a significant disparity in valuation.
The company's return performance shows mixed results; while it has outperformed the S&P 500 over the 1-week, 1-month, and 1-year periods, with returns of 18.73%, 36.93%, and 48.30% respectively, it has underperformed year-to-date with a return of -5.30%. This suggests that despite recent short-term gains, the overall valuation and financial health of Research Solutions, Inc. may not justify its current price levels.