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 increased caution for investors. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 0.69, an EV to Sales ratio of 0.28, and a negative EV to EBITDA of -1.72. These ratios suggest that the company's valuation does not align well with its financial performance.
In comparison to its peers, SmartRent's EV to EBITDA ratio of -1.72 is significantly worse than that of Allot Ltd., which has an EV to EBITDA of 67.7987, and Silicom Ltd., which stands at -3.8590. This underperformance relative to peers reinforces the notion of overvaluation. Additionally, SmartRent has underperformed against the S&P 500 over various time frames, with a year-to-date return of -8.57% compared to the S&P 500's 12.22%, further highlighting its challenging position in the market.