Is Yunhong Green CTI Ltd. overvalued or undervalued?

As of 9 February 2022, the valuation grade for Yunhong Green CTI Ltd. has moved from very attractive to risky, indicating a significant deterioration in its financial outlook. The company appears to be overvalued based on its current metrics, with a price-to-book value of 1.96 and an EV to EBITDA ratio of 27.39, which is notably high compared to its peers. The return on equity (ROE) stands at -12.79%, reflecting ongoing losses and inefficiencies.
In comparison to its peers, Yunhong Green CTI Ltd. has a P/E ratio of -14.71, while Daktronics, Inc. is fairly valued with a P/E of 23.31, and TriMas Corp. is very expensive at 40.97. The stark contrast in valuation ratios suggests that Yunhong Green CTI Ltd. is not only underperforming but also carries a higher risk profile. Additionally, the company's stock has underperformed relative to the S&P 500 over the past year, with a return of -38.84% compared to the index's 10.26%, reinforcing the notion that it is overvalued at its current price of 0.76.