Is Universal Security Instruments, Inc. overvalued or undervalued?

As of 10 May 2024, the valuation grade for Universal Security Instruments, Inc. has moved from expensive to risky. The company is currently assessed as overvalued given its negative earnings and poor return metrics. Key ratios include a Price to Book Value of 1.61, an EV to EBIT of -7.95, and an ROE of -30.73%.
In comparison to peers, Radware Ltd. is rated fair with a P/E of 128.27, while Allot Ltd. is also risky with a P/E of -94.71. The significant disparity in valuation and performance metrics suggests that Universal Security Instruments is not only overvalued but also struggling compared to its peers. Despite a strong recent stock performance, with a 1-year return of 93.94% compared to the S&P 500's 10.26%, the underlying financial health indicates a need for caution.