Is Socket Mobile, Inc. overvalued or undervalued?

As of 27 April 2023, the valuation grade for Socket Mobile, Inc. has moved from attractive to risky, indicating a significant shift in the company's perceived value. The company appears to be overvalued at this time, given its negative financial metrics. Key ratios include a Price to Book Value of 0.52, an EV to EBIT of -4.08, and an EV to EBITDA of -9.78, all of which signal underlying financial distress.
In comparison to its peers, Socket Mobile's valuation stands out negatively. For instance, ADTRAN Holdings, Inc. has a P/E ratio of -8.6185 and an EV to EBITDA of 27.4715, while Immersion Corp., which is rated attractive, shows a P/E of 3.0796 and an EV to EBITDA of 2.5733. The recent stock performance has been poor, with a year-to-date return of -14.29%, significantly lagging behind the S&P 500's 2.44% return, further reinforcing the notion that Socket Mobile is currently overvalued.