Is TransAct Technologies, Inc. overvalued or undervalued?

As of 8 August 2024, the valuation grade for TransAct Technologies, Inc. has moved from attractive to risky, indicating a significant shift in its financial outlook. The company is currently considered overvalued. Key ratios highlight this concern, with a Price to Book Value of 1.67, an EV to EBIT of -17.68, and an EV to EBITDA of -27.13, all suggesting financial distress and poor profitability.
In comparison to its peers, TransAct Technologies, Inc. has a less favorable standing, with Stratasys Ltd. showing a P/E of -7.9711 and an EV to EBITDA of -19.2984, while ADTRAN Holdings, Inc. has a P/E of -8.6185 and a positive EV to EBITDA of 27.4715. These comparisons further emphasize the company's challenging position within its industry. Additionally, the stock has underperformed against the S&P 500 over various time frames, including a year-to-date return of -10.27% compared to the index's 2.44%, reinforcing the notion of overvaluation.