Is Techprecision Corp. overvalued or undervalued?

As of 10 May 2022, the valuation grade for Techprecision Corp. moved from very expensive to risky, indicating a significant shift in its perceived value. The company is currently considered overvalued based on its financial ratios and peer comparisons. Key ratios include a price to book value of 4.29, an EV to EBIT of -8.55, and an EV to EBITDA of -19.20, all of which reflect poor financial performance and a lack of profitability.
In comparison to its peers, Techprecision Corp. shows a stark contrast with Graham Corp., which has a P/E ratio of 45.56 and is categorized as expensive, while Natural Gas Services Group, Inc. is fairly valued with a P/E of 18.93. The negative return on equity of -98.52% and return on capital employed of -31.16% further emphasize the company's struggles. Additionally, Techprecision Corp.'s stock has underperformed against the S&P 500 over the long term, with a 3-year return of -45.30% compared to the index's 58.74%.