Is Soluna Holdings, Inc. overvalued or undervalued?

As of 10 August 2021, the valuation grade for Soluna Holdings, Inc. changed from attractive to risky, indicating a deterioration in its investment appeal. The company is overvalued given its negative valuation ratios, including a Price to Book Value of -0.55 and an EV to EBITDA of -1.98, both of which suggest significant financial distress relative to its peers. In comparison, Profire Energy, Inc. shows a much healthier P/E ratio of 14.05 and an EV to EBITDA of 10.70, highlighting the stark contrast in valuation metrics within the industry.
Recent performance indicates that while Soluna Holdings has seen a notable 64.65% return over the past month, it has suffered a staggering -70.06% decline over the past year, significantly underperforming the S&P 500, which returned 17.14% in the same period. This combination of poor ratios and dismal long-term performance reinforces the conclusion that Soluna Holdings, Inc. is overvalued.