Is 1-800-FLOWERS.COM, Inc. overvalued or undervalued?

As of 11 May 2023, the valuation grade for 1-800-FLOWERS.COM, Inc. has moved from expensive to risky, indicating a deterioration in its valuation outlook. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 1.36 and an EV to EBITDA ratio of 33.37, which suggests a high valuation relative to its earnings before interest, taxes, depreciation, and amortization. Additionally, the negative ROCE of -9.25% and ROE of -9.32% further highlight the company's struggles in generating returns.
In comparison to its peers, 1-800-FLOWERS.COM, Inc. has a significantly higher EV to EBITDA ratio than Beyond, Inc. at -4.93 and a.k.a. Brands Holding Corp. at 23.96, which underscores its relative overvaluation. The stock has underperformed against the S&P 500 over multiple periods, with a year-to-date return of -30.84% compared to the index's 12.22%, reinforcing the notion that the stock is not only risky but also potentially overvalued in the current market environment.