Is Socket Mobile, Inc. overvalued or undervalued?

As of 27 April 2023, the valuation grade for Socket Mobile, Inc. has moved from expensive to risky, indicating a shift in perception towards the company's financial health. The company appears to be overvalued based on its current metrics, particularly with a Price to Book Value of 0.52 and an EV to Sales ratio of 0.66, both suggesting that the market may not be adequately pricing in the risks associated with its performance. Additionally, the EV to EBITDA ratio stands at -9.78, reflecting significant operational challenges.
In comparison to its peers, Socket Mobile, Inc. shows a less favorable position; for instance, Backblaze, Inc. has a more negative EV to EBITDA of -38.1755, while Immersion Corp. is classified as attractive with a positive EV to EBITDA of 2.4151. This highlights the relative weakness of Socket Mobile in its industry. Furthermore, the company's stock has underperformed against the S&P 500, with a year-to-date return of -20.98% compared to the index's 12.22%, reinforcing the notion that the stock may be overvalued given its current financial standing.