Is Telos Corp. overvalued or undervalued?

As of 17 May 2021, the valuation grade for Telos Corp. moved from expensive to risky, indicating a significant shift in the company's perceived value. The company is currently assessed as overvalued given its financial metrics, particularly with a Price to Book Value of 1.60 and a troubling ROCE of -63.03%. Additionally, the EV to EBITDA ratio stands at -4.39, reflecting negative earnings before interest, taxes, depreciation, and amortization, which further supports the overvaluation conclusion.
In comparison to peers, Telos Corp. exhibits a notably poor performance, with its EV to EBITDA ratio of -4.1057, while companies like NETGEAR, Inc. are valued attractively with an EV to EBITDA of -7.7552. Other risky peers, such as Blend Labs, Inc., show a significantly worse P/E ratio at -21.4803, yet still highlight the challenges faced by Telos Corp. The company's stock has underperformed relative to the S&P 500, with a YTD return of -26.61% compared to the index's 2.44%, reinforcing the notion that Telos Corp. is currently overvalued.