Is Retractable Technologies, Inc. overvalued or undervalued?

As of 15 May 2023, the valuation grade for Retractable Technologies, Inc. has moved from expensive to risky, indicating a shift in perception regarding its financial health and market position. The company is considered overvalued given its negative earnings and poor return metrics. Key valuation ratios include a Price to Book Value of 0.26, an EV to EBIT of 0.64, and an EV to EBITDA of 0.96, all of which suggest that the company's valuation is not supported by its financial performance.
In comparison to its peers, Retractable Technologies, Inc. has a significantly lower EV to EBITDA ratio than Delcath Systems, Inc. at 60.33 and Neuronetics, Inc. at -7.61, highlighting its relative underperformance in the market. Additionally, while the company has shown a positive return of 20.35% year-to-date, it still lags behind the S&P 500's return of 12.22% during the same period, and its long-term performance has been notably poor with a 5-year return of -88.89% compared to the S&P 500's 96.61%.