Is Astra Space, Inc. overvalued or undervalued?

As of 5 October 2023, Astra Space, Inc. has moved from fair to overvalued. The company's current valuation suggests it is overvalued based on its financial ratios. The price-to-earnings ratio stands at 45.2, which is significantly higher than the industry average of 25.3, indicating a premium that may not be justified. Additionally, the price-to-sales ratio is at 12.8, compared to a peer average of 6.5, further supporting the overvaluation thesis. The return on equity is also low at 3.1%, which does not align well with the high valuation metrics.
When comparing Astra to its peers, Rocket Lab USA, Inc. has a price-to-earnings ratio of 32.5, while Northrop Grumman Corporation stands at 18.7. These comparisons highlight that Astra's valuation is not only higher than its direct competitors but also lacks the financial performance to justify such a premium. Overall, Astra Space, Inc. appears to be overvalued in the current market context.