Is ACCO Brands Corp. overvalued or undervalued?

As of 22 February 2024, the valuation grade for ACCO Brands Corp. has moved from very attractive to risky, indicating a significant deterioration in its investment appeal. The company is currently deemed overvalued. Key ratios reveal a P/E ratio of 5, an EV to EBITDA of 5.72, and a Price to Book Value of 0.58, which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, ACCO Brands Corp. has a lower P/E ratio than Steelcase, Inc. (9.37) and Acme United Corp. (19.60), both of which are rated more favorably. Additionally, the company's EV to EBITDA ratio is higher than that of Virco Manufacturing Corp. (4.37) and Kewaunee Scientific Corp. (7.23), further supporting the conclusion that ACCO is overvalued. Notably, the company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -34.1% compared to the index's 2.44%, reinforcing concerns about its current valuation.