Is Tigo Energy, Inc. overvalued or undervalued?

As of 13 February 2024, Tigo Energy, Inc. has seen its valuation grade change from attractive to risky, indicating a significant shift in its perceived value. The company is currently overvalued, as evidenced by its troubling financial ratios, including a Price to Book Value of 18.73 and a staggering ROE of -1541.64%. Additionally, the EV to EBITDA ratio stands at -2.05, reflecting the company's loss-making status and highlighting its financial struggles.
In comparison to its peers, Tigo Energy's valuation appears unfavorable. For instance, Benchmark Electronics, Inc. has a fair P/E ratio of 22.81 and an EV to EBITDA of 8.49, while Kimball Electronics, Inc. is considered expensive with a P/E of 21.06. The stark contrast in these ratios underscores Tigo Energy's precarious position in the market. Despite a recent positive stock performance, with a 30% return over the past month compared to the S&P 500's 3.83%, the overall valuation remains concerning, suggesting that investors should approach Tigo Energy with caution.