Is a.k.a. Brands Holding Corp. overvalued or undervalued?

As of 9 November 2021, the valuation grade for a.k.a. Brands Holding Corp. moved from very expensive to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 1.33 and an EV to EBITDA ratio of 30.94, which suggests that investors are paying a premium for earnings that are not currently being generated. Additionally, the company's ROCE stands at -4.51% and ROE at -22.79%, highlighting significant financial challenges.
In comparison to its peers, a.k.a. Brands Holding Corp. has a notably unfavorable P/E ratio of -4.72, while Petco Health & Wellness Company, Inc. has a P/E of -14.10 and Beyond, Inc. at -2.01, indicating that all companies in this segment are struggling. The EV to Sales ratio of 0.43 further emphasizes the company's low revenue generation relative to its enterprise value. Overall, the combination of these ratios and the company's negative stock performance against the S&P 500 reinforces the conclusion that a.k.a. Brands Holding Corp. is overvalued in the current market.