Is Willamette Valley Vineyards, Inc. overvalued or undervalued?

As of 14 November 2022, the valuation grade for Willamette Valley Vineyards, Inc. moved from expensive to risky, indicating a shift in perception regarding its valuation. The company appears to be overvalued given its financial metrics, with a Price to Book Value of 0.42, an EV to EBITDA ratio of 13.39, and an EV to Capital Employed of 0.55. Comparatively, peers such as Fresh Vine Wine, Inc. and Vintage Wine Estates, Inc. show significantly lower valuation ratios, with EV to EBITDA ratios of -2.4677 and -5.6728, respectively.
The company's recent stock performance has been mixed; while it has outperformed the S&P 500 year-to-date with a return of 31.34% compared to the index's 12.22%, it has significantly underperformed over longer periods, with a 3-year return of -28.57% versus the S&P 500's 70.41%. Overall, these factors suggest that Willamette Valley Vineyards, Inc. is overvalued in the current market context.