Is SigmaTron International, Inc. overvalued or undervalued?

As of 10 June 2024, SigmaTron International, Inc. has moved from a fair to a risky valuation grade. The company appears to be overvalued given its negative financial metrics, including a Price to Book Value of 0.32, an EV to EBITDA of 20.86, and a ROE of -22.46%. Compared to peers, SigmaTron has a significantly higher EV to EBITDA ratio than Neonode, Inc. at -9.88 and Airgain, Inc. at -8.72, indicating a less favorable valuation position.
In terms of stock performance, SigmaTron has shown a year-to-date return of 69.1%, which significantly outperforms the S&P 500's 12.22% return, but over the longer term, it has underperformed with a one-year return of -38.95% compared to the S&P 500's 17.14%. This discrepancy highlights the volatility and potential risk associated with investing in SigmaTron at its current valuation.