Is Stran & Co., Inc. overvalued or undervalued?

As of 28 March 2024, the valuation grade for Stran & Co., Inc. has moved from very expensive to risky, indicating a shift in perception regarding its financial health. The company is currently considered undervalued based on its price-to-book value of 0.81 and an EV to sales ratio of 0.16, despite being loss-making with a P/E ratio that is not applicable. The return on capital employed (ROCE) stands at -23.43%, and the return on equity (ROE) is at -13.58%, both highlighting significant challenges in profitability.
In comparison to its peers, Stran & Co., Inc. shows a stark contrast with IBEX Ltd., which is rated attractive with a P/E of 10.21, and Steel Connect, Inc., rated very attractive with a P/E of 2.94. The valuation metrics suggest that while Stran & Co. is facing difficulties, its current pricing may reflect an undervaluation relative to its peers, especially considering its recent stock performance, which has outpaced the S&P 500 over the past month with a return of 19.35% compared to 3.83%.