Is SPAR Group, Inc. overvalued or undervalued?

As of 10 February 2025, the valuation grade for SPAR Group, Inc. has moved from attractive to risky, indicating a significant deterioration in its financial outlook. The company is currently deemed overvalued based on its financial metrics. Key ratios include a Price to Book Value of 1.02, an EV to EBITDA of 14.42, and a negative ROCE of -1.72%.
In comparison to its peers, SPAR Group, Inc. has a P/E ratio of -9.45, while National CineMedia, Inc. shows a P/E of -26.47, and IBEX Ltd. presents a more favorable P/E of 10.21. The EV to EBITDA ratio for SPAR is notably higher than that of IBEX Ltd. at 6.18, suggesting that SPAR is not only underperforming but also potentially overvalued in relation to its peers. Furthermore, the company's stock has significantly underperformed against the S&P 500, with a year-to-date return of -46.39% compared to the index's 2.44%.