Is Western Acquisition Ventures Corp. overvalued or undervalued?

As of 6 June 2025, the valuation grade for Western Acquisition Ventures Corp. has moved from fair to risky, indicating a shift towards a more negative outlook. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 4, which is significantly lower than the industry average. Additionally, the EV to EBITDA ratio stands at 6.16, and the PEG ratio is an exceptionally low 0.02, suggesting that the stock may not be priced appropriately relative to its growth prospects.
In comparison to its peers, Western Acquisition Ventures Corp. has a P/E ratio of 4.17, while Perception Capital Corp. III shows a negative P/E of -61.98, and Oxus Acquisition Corp. also reflects a negative P/E of -3.37, indicating that Western's valuation is relatively better but still concerning. The company's ROE of 22.83% and ROCE of 15.53% are respectable, yet they do not sufficiently justify the current valuation given the overall risk profile. While specific return data is not available, the absence of positive returns compared to the S&P 500 reinforces the notion that the stock may not be a favorable investment at this time.