Is TruGolf Holdings, Inc. overvalued or undervalued?

As of 10 May 2024, the valuation grade for TruGolf Holdings, Inc. has moved from does not qualify to risky, indicating a significant shift in the company's perceived value. The company appears to be overvalued, especially given its negative P/E ratio of -0.502 and an EV to EBITDA ratio of -2.5051, which suggest that the market is pricing the stock unfavorably compared to its earnings potential. Additionally, the absence of a PEG ratio indicates a lack of growth expectations from the market.
When compared to peers, TruGolf's valuation metrics starkly contrast with the industry standards, highlighting its precarious position. For instance, while TruGolf's P/E ratio is negative, it is crucial to note that this is not typical for the industry, which generally reflects more favorable valuations. The company's recent stock performance has been dismal, with a year-to-date return of -90.32% compared to the S&P 500's positive return of 12.22%, further reinforcing the notion that TruGolf is not only overvalued but also struggling significantly in the market.