Is Spectral AI, Inc. overvalued or undervalued?

As of 14 November 2023, the valuation grade for Spectral AI, Inc. has moved from does not qualify to risky, indicating increased scrutiny regarding its financial health. The company is currently considered overvalued, particularly given its negative P/E ratio and troubling price-to-book value of -31.67. Additionally, the EV to EBITDA stands at -9.34, further highlighting the challenges the company faces in generating positive earnings.
In comparison to peers, Spectral AI's P/E ratio of -5.80 is significantly worse than that of SharpLink Gaming Ltd., which has a P/E of -150.15, and Verb Technology Co., Inc., with a P/E of -1.03. This suggests that while the entire sector is struggling, Spectral AI is not positioned favorably within its peer group. Notably, the company's stock has underperformed against the S&P 500 year-to-date, with a return of -27.56% compared to the S&P's 2.44%.