Is VirnetX Holding Corp. overvalued or undervalued?

As of 10 May 2021, the valuation grade for VirnetX Holding Corp. moved from very attractive to does not qualify. The company is currently considered overvalued given its negative financial metrics, including a P/E ratio that is not applicable due to losses, a Price to Book Value of 1.33, and an EV to EBITDA of -0.72. The return on capital employed (ROCE) stands at an alarming -892.46%, indicating severe inefficiency in generating profits from capital.
In comparison to its peers, VirnetX Holding Corp. shows significant underperformance. For instance, Beamr Imaging Ltd. has a P/E of -17.38, while Phunware, Inc. has a P/E of -5.46, both reflecting the challenging environment in this sector. The company's recent stock performance has outpaced the S&P 500 over the past year, with a return of 50.91% compared to the index's 10.26%, but this does not mitigate the overall overvaluation indicated by the financial ratios.