Is AGBA Group Holding Ltd. overvalued or undervalued?

As of 15 May 2023, AGBA Group Holding Ltd. has moved from a grade of "does not qualify" to "risky." The company is currently assessed as overvalued. Key ratios indicate significant financial distress, with a Price to Book Value of -20.79 and both EV to EBIT and EV to EBITDA at -2.61 and -2.62, respectively. The negative return on capital employed and return on equity further highlight the company's challenges.
In comparison to its peers, AGBA's valuation metrics are concerning. For instance, SuRo Capital Corp. has a P/E ratio of -10.26, while Westwood Holdings Group, Inc. boasts a P/E of 185.05, indicating a stark contrast in performance and valuation. Additionally, AGBA's stock has underperformed significantly against the S&P 500, with a year-to-date decline of 73.42% compared to the index's modest gain of 2.44%. These factors collectively suggest that AGBA Group Holding Ltd. is not only overvalued but also facing substantial operational hurdles.