Is VerifyMe, Inc. overvalued or undervalued?

As of 15 August 2022, VerifyMe, Inc. has moved from a grade of "does not qualify" to "risky." The company is currently considered overvalued based on its financial metrics. The P/E ratio is not applicable due to losses, while the Price to Book Value stands at 0.71, indicating a low valuation relative to its book value. Additionally, the EV to Sales ratio is 0.24, which further suggests that the company is not generating sufficient revenue relative to its enterprise value.
In comparison to peers, VerifyMe's EV to EBITDA ratio is -5.51, which is significantly worse than CareCloud, Inc. at 3.5918, indicating that VerifyMe is struggling to generate positive earnings before interest, taxes, depreciation, and amortization. Other risky peers like CXApp, Inc. have an EV to EBITDA of -1.9007, still showing better relative performance. The company's recent stock performance has been poor, with a year-to-date return of -48.48%, significantly underperforming the S&P 500's 2.44% return.