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

As of 10 February 2023, the valuation grade for 7GC & Co. Holdings, Inc. moved from expensive to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued given its significant negative performance metrics, including a Price to Book Value of 2.10, an EV to EBIT of -1.39, and an EV to EBITDA of -1.43. These ratios suggest that the company is struggling to generate positive earnings relative to its valuation.
In comparison to peers, 7GC & Co. Holdings, Inc. has a notably poor EV to EBITDA ratio of -1.4496, while Acri Capital Acquisition Corp. also falls into the risky category with an EV to EBITDA of -5.2738. Meanwhile, Mountain Crest Acquisition Corp. IV is classified as fair with a much healthier EV to EBITDA of -34.0887. Although return data is not available for the company, the context of its valuation metrics suggests a challenging outlook compared to the broader market.