Is SmartRent, Inc. overvalued or undervalued?

As of 10 November 2021, the valuation grade for SmartRent, Inc. has moved from does not qualify to risky, indicating a significant shift in its perceived investment quality. The company appears to be overvalued given its financial metrics, including a Price to Book Value of 0.69 and an EV to Sales ratio of 0.28, which are low but reflect the company's struggles. Notably, the ROCE stands at -27.17% and the ROE at -9.10%, further highlighting the company's financial difficulties.
In comparison to its peers, SmartRent's valuation metrics are concerning. For instance, Radware Ltd. has a P/E ratio of 128.27, while Iteris, Inc. is considered expensive with a P/E of 221.37, showcasing a stark contrast in valuation. The company's stock has underperformed significantly, with a year-to-date return of -47.91% compared to a modest 2.44% return from the S&P 500. Overall, these indicators suggest that SmartRent, Inc. is overvalued in the current market context.