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 significant downgrade in its perceived value. The company appears to be overvalued, particularly given its negative return metrics and weak financial ratios. The Price to Book Value stands at 1.33, while the EV to EBITDA ratio is notably high at 30.94, reflecting potential overvaluation concerns. Additionally, the company's Return on Capital Employed (ROCE) is at -4.51%, and Return on Equity (ROE) is at -22.79%, further underscoring its financial struggles.
In comparison with peers, a.k.a. Brands Holding Corp. has a negative P/E ratio of -4.2935, while Beyond, Inc. shows a slightly less negative P/E of -3.8312, indicating that both companies are facing challenges in profitability. The company's recent stock performance has been poor, with a year-to-date return of -41.75% compared to a positive 12.22% return for the S&P 500, and a one-year return of -55.56% versus 17.14% for the index, reinforcing the notion that the stock is currently overvalued.