Is Abacus Life, Inc. overvalued or undervalued?

As of 12 August 2024, the valuation grade for Abacus Life, Inc. has moved from very expensive to risky, indicating a shift in perception towards the company's financial health. The company is currently considered overvalued given its significant losses, reflected in a P/E ratio of NA and a negative ROE of -2.95%. Key ratios such as the Price to Book Value at 1.34 and an EV to EBITDA of 35.14 further underscore concerns regarding its valuation relative to its financial performance.
In comparison to peers, Abacus Life's valuation appears unfavorable; for instance, its peer has a P/E ratio of -41.77 and an EV to EBITDA of 33.24, suggesting that the market is pricing in significant risk for Abacus Life. Additionally, the company's stock has underperformed relative to the S&P 500, with a year-to-date return of -30.40% compared to the index's 2.44%. Overall, these factors contribute to the conclusion that Abacus Life, Inc. is overvalued in the current market environment.