Is Tucows, Inc. overvalued or undervalued?

As of 5 May 2022, the valuation grade for Tucows, Inc. moved from expensive to risky, indicating a deterioration in its financial standing. The company is considered overvalued given its negative valuation metrics, including a Price to Book Value of -1.98, an EV to EBIT of -78.23, and an EV to EBITDA of 4.52. Comparatively, peers such as Rackspace Technology, Inc. have an EV to EBITDA of 11.29, while Forge Global Holdings, Inc. shows an EV to EBITDA of -2.97, highlighting Tucows' relative weakness in valuation.
Despite a recent one-week stock return of 2.51% compared to the S&P 500's 1.05%, the longer-term outlook is concerning, with a one-year return of -17.27% against the S&P 500's 17.14%. This stark contrast in performance further supports the conclusion that Tucows, Inc. is overvalued in its current market position.