Is VerifyMe, Inc. overvalued or undervalued?

As of 15 August 2022, the valuation grade for VerifyMe, Inc. has moved from does not qualify to risky, indicating a deterioration in its investment appeal. The company appears to be overvalued given its financial metrics, with a Price to Book Value of 0.71, an EV to EBITDA of -5.51, and a ROCE of -20.90%. In comparison to peers, CareCloud, Inc. has a significantly more favorable P/E ratio of 12.6550 and an EV to EBITDA of 5.1296, while GigaMedia Ltd. shows a P/E of 17.9599, further highlighting VerifyMe's challenges.
The stock has underperformed against the S&P 500, with a year-to-date return of -31.94% compared to the index's 12.22%. This trend continues over longer periods, with a 5-year return of -70.52% versus the S&P 500's 96.61%, reinforcing the notion that VerifyMe, Inc. is currently overvalued in the market.