Is TOMI Environmental Solutions, Inc. overvalued or undervalued?

As of 16 August 2021, the valuation grade for TOMI Environmental Solutions, Inc. moved from expensive to risky, indicating a significant deterioration in its valuation outlook. The company is currently considered overvalued, particularly given its negative profitability metrics, with a Price to Book Value of 5.52, an EV to EBIT of -6.41, and an EV to EBITDA of -7.00.
In comparison to its peers, TOMI's valuation ratios are notably worse; for instance, Palladyne AI Corp. has an EV to EBITDA of -8.0862, while KULR Technology Group, Inc. shows -6.7528. Furthermore, TOMI's recent stock performance has been mixed, with a 1-year return of 33.76%, outperforming the S&P 500's 17.14%, but it has significantly underperformed over the longer term, with a 5-year return of -83.88% compared to the S&P 500's 96.61%.