Is Sonim Technologies, Inc. overvalued or undervalued?

As of 27 March 2024, the valuation grade for Sonim Technologies, Inc. has moved from fair to risky, indicating a deteriorating outlook. The company appears to be overvalued, given its negative price-to-book value of -9.89 and an EV to EBITDA ratio of -0.50, which reflect significant financial distress. Additionally, the EV to sales ratio of 0.20 suggests that the market is not valuing the company's sales effectively.
In comparison to its peers, Sonim Technologies has a P/E ratio of -0.3423, while PowerFleet, Inc. also shows a risky valuation with a P/E of -29.4245, and BK Technologies Corp. stands out as attractive with a P/E of 30.1223. The stark contrast in valuations among these companies highlights Sonim's struggles within the telecom equipment sector. Over the past year, Sonim's stock has declined by 72.82%, significantly underperforming the S&P 500's return of 17.14%, reinforcing the notion that the company is currently overvalued.