Is Satellogic, Inc. overvalued or undervalued?

As of 4 December 2023, the valuation grade for Satellogic, Inc. has moved from does not qualify to risky, indicating a shift towards increased caution regarding its investment potential. The company appears to be overvalued, particularly given its negative P/E ratio and troubling valuation metrics. Key ratios include a Price to Book Value of -4.38, an EV to EBIT of -8.50, and an EV to EBITDA of -11.22, all of which suggest significant financial distress.
In comparison to its peers, Satellogic's P/E ratio of -6.80 stands in stark contrast to Kaman Corp.'s very expensive P/E of 120.26 and Innovative Solutions & Support, Inc.'s attractive P/E of 19.21. This highlights the challenges Satellogic faces within the Aerospace & Defense industry. While the company has shown impressive one-year returns of 225.69%, this is juxtaposed against a negative return over three years of -14.04%, indicating volatility and potential underlying issues. Overall, Satellogic seems to be overvalued relative to its financial performance and peer benchmarks.