Is Velo3D, Inc. overvalued or undervalued?

As of 10 August 2023, Velo3D, Inc. has moved from a valuation grade of very attractive to risky. The company is currently overvalued, given its troubling financial metrics. The P/E ratio is not applicable due to losses, while the Price to Book Value stands at 3.41, and the EV to Sales ratio is 3.25. Additionally, the ROCE and ROE are alarmingly low at -138.95% and -307.29%, respectively.
In comparison to its peers, Velo3D's valuation appears unfavorable. For instance, ACM Research, Inc. has a P/E ratio of 12.14 and an EV to EBITDA of 8.25, indicating a much healthier financial position. Similarly, CECO Environmental Corp. shows a P/E of 18.37 and an EV to EBITDA of 23.35, further highlighting Velo3D's struggles. The company's recent stock performance has been dismal, with a 1-year return of -84.39%, contrasting sharply with the S&P 500's 10.26% gain, reinforcing the notion that Velo3D is not a sound investment at its current valuation.