Is Unusual Machines, Inc. overvalued or undervalued?

As of 14 August 2024, the valuation grade for Unusual Machines, Inc. has moved from does not qualify to risky, indicating a significant shift in its perceived investment quality. The company appears to be overvalued given its current financial metrics. The P/E ratio is not applicable due to losses, while the Price to Book Value stands at 11.59, and the EV to EBITDA is at -19.91, reflecting negative earnings performance.
In comparison to peers, Unusual Machines, Inc. has a valuation of -25.515, which is substantially lower than the industry average. Notably, its ROCE is at -82.99% and ROE at -57.49%, both suggesting poor profitability. The stock has shown a remarkable return of 474.65% over the past year, which contrasts sharply with the S&P 500's 10.26% return, but this does not negate the current overvaluation based on fundamental analysis.