Is Sonendo, Inc. overvalued or undervalued?

As of 10 May 2022, Sonendo, Inc. has moved from a valuation grade of "does not qualify" to "risky." The company is currently considered undervalued, given its significant price-to-book value of 0.10 and an EV to sales ratio of 0.14, despite being loss-making with a P/E ratio that is not applicable. The company's return on capital employed (ROCE) stands at a staggering -304.92%, and return on equity (ROE) is at -614.16%, indicating severe financial distress.
In comparison to its peers, Sonendo's valuation metrics are notably poor, with Delcath Systems, Inc. showing a P/E of -509.51 and iCAD, Inc. at -19.95, both categorized as risky. Conversely, Sensus Healthcare, Inc. is considered expensive with a P/E of 44.22, highlighting the disparity in valuations within the sector. Overall, Sonendo appears to be undervalued relative to its peers, although the risk associated with its financial performance cannot be overlooked.