Is 7GC & Co. Holdings, Inc. overvalued or undervalued?

As of 8 November 2023, the valuation grade for 7GC & Co. Holdings, Inc. has moved from does not qualify to risky, indicating a significant shift in its perceived investment quality. The company is currently considered overvalued, with a Price to Book Value of 2.10 and negative ratios for both EV to EBIT (-1.39) and EV to EBITDA (-1.43), reflecting its loss-making status. The ROCE stands at a concerning -84.69%, and the ROE is an alarming -626.09%, further underscoring the company's financial struggles.
In comparison to its peers, 7GC & Co. Holdings, Inc. shows a stark contrast to Mountain Crest Acquisition Corp. IV, which has a fair valuation with a P/E ratio of 49.22, and Perception Capital Corp. III, which is classified as does not qualify with a P/E of -61.98. The negative performance metrics and the high valuation ratios suggest that investors may be overestimating the company's future prospects, especially given the substantial gap in performance compared to its peers.