Is Soluna Holdings, Inc. overvalued or undervalued?

As of 10 August 2021, the valuation grade for Soluna Holdings, Inc. moved from fair to risky, indicating a significant deterioration in its financial outlook. The company is currently considered overvalued given its negative financial ratios, including a Price to Book Value of -0.55 and an EV to EBITDA of -1.98. Furthermore, its return on equity (ROE) is negative, reflecting ongoing financial struggles.
In comparison to its peers, Soluna Holdings stands out with a P/E ratio of NA due to its loss-making status, while Profire Energy, Inc. is valued attractively with a P/E of 14.05. Additionally, Femasys, Inc. is also categorized as risky with an EV to EBITDA of -1.52. The stark contrast in valuation metrics highlights the challenges facing Soluna Holdings. The company's stock has significantly underperformed against the S&P 500, with a year-to-date decline of 74.02%, reinforcing the notion that it is overvalued in its current state.