Is TeraWulf, Inc. overvalued or undervalued?

As of 25 April 2019, TeraWulf, Inc. moved from a fair to risky valuation grade, indicating a deterioration in its investment appeal. The company appears overvalued given its high Price to Book Value of 9.82, a negative EV to EBIT of -16.78, and a troubling ROE of -70.93%. In comparison to its peers, TeraWulf's P/E ratio is not applicable due to losses, while Cipher Mining, Inc. has a P/E of -26.41, and CleanSpark, Inc. shows a more favorable EV to EBITDA of 13.21.
Despite the overvaluation, TeraWulf has demonstrated impressive stock performance, with a year-to-date return of 97.35% compared to the S&P 500's 12.22%, and a staggering three-year return of 854.70% against the S&P 500's 70.41%. However, these returns may not fully justify the current valuation metrics, reinforcing the view that TeraWulf is overvalued in the market.