Is SurgePays, Inc. overvalued or undervalued?

As of 13 August 2024, SurgePays, Inc. has moved from a fair to a risky valuation grade. The company appears to be overvalued given its significant negative financial metrics, including a Price to Book Value of 7.32, an EV to EBIT of -1.09, and an EV to EBITDA of -1.12. Comparatively, peers such as Spire Global, Inc. and Fathom Holdings, Inc. also carry risky valuations with EV to EBITDA ratios of -8.2383 and -5.8220, respectively, indicating a challenging environment for the sector.
Despite a strong year-to-date stock return of 61.80% compared to the S&P 500's 12.22%, the long-term performance shows a concerning trend, with a 3-year return of -42.05% versus the S&P 500's 70.41%. This disparity suggests that while recent performance may seem promising, the underlying financial health of SurgePays, Inc. raises significant concerns about its valuation.