Is XWELL, Inc. overvalued or undervalued?

As of 15 August 2022, the valuation grade for XWELL, Inc. moved from fair to risky, indicating a significant deterioration in its valuation outlook. The company appears to be overvalued given its negative price-to-book value of -0.86 and an EV to EBITDA ratio of 0.28, which suggests that the market is not pricing in the company's financial health appropriately. Additionally, the return on capital employed (ROCE) is exceptionally high at 96.86%, but this is overshadowed by the overall negative financial metrics.
In comparison to its peers, XWELL, Inc. has a P/E ratio of -0.3332, while Afya Ltd. is considered attractive with a P/E of 11.8061, and Despegar.com Corp. is deemed expensive at 51.8610. The stark contrast in valuation ratios highlights XWELL's challenging position within the industry. Furthermore, the company's stock has significantly underperformed against the S&P 500, with a year-to-date return of -27.54% compared to the index's 12.22%, reinforcing the perception of overvaluation.