Is SPI Energy Co. Ltd. overvalued or undervalued?

As of 14 November 2022, the valuation grade for SPI Energy Co. Ltd. has moved from does not qualify to risky, indicating a significant downgrade in its investment appeal. The company is currently considered overvalued given its negative P/E ratio of -0.0071 and an EV to EBITDA ratio of 0.27, which suggests that the market is not valuing its earnings potential appropriately. Additionally, the ROCE stands at an impressive 485.04%, yet this figure is overshadowed by the company's overall financial instability.
In comparison to its peers, SPI Energy Co. Ltd. exhibits a less favorable position, particularly when looking at Neonode, Inc. with a P/E of -53.1250 and EV to EBITDA of -45.4552, and Satixfy Communications Ltd. with a P/E of -6.3907 and EV to EBITDA of -14.7472. The stark contrast in these ratios highlights the challenges faced by SPI Energy in attracting investor confidence. Furthermore, the company's stock has drastically underperformed against the S&P 500, with a year-to-date return of -99.09%, reinforcing the view that it is overvalued in the current market environment.