Is Sonendo, Inc. overvalued or undervalued?

As of 10 May 2022, the valuation grade for Sonendo, Inc. has moved from does not qualify to risky, indicating a heightened level of concern regarding its financial health. The company appears to be overvalued, given its significant negative ratios, including a Price to Book Value of 0.10, an EV to EBIT of -0.16, and an EV to EBITDA of -0.17. These metrics suggest that the market is not valuing the company favorably compared to its peers.
In comparison to its industry, Sonendo's valuation ratios are concerning, especially when looking at peers like Delcath Systems, Inc., which has a P/E ratio of 68.06, and iCAD, Inc., which has a P/E ratio of -19.65. The stark contrast in valuations highlights the challenges Sonendo faces in attracting investor confidence. Although return data is not available for a direct comparison with the S&P 500, the company's current price of $0.25, significantly lower than its 52-week high of $11.74, reinforces the perception of overvaluation amidst its financial struggles.