Is Alight, Inc. overvalued or undervalued?

As of 21 February 2023, the valuation grade for Alight, Inc. has moved from expensive to risky, indicating a shift in perception regarding its financial health. The company is currently considered overvalued. Key ratios highlight this concern, with a Price to Book Value of 0.73, an EV to EBIT of 75.85, and an EV to EBITDA of 10.20, all suggesting significant financial strain.
In comparison to its peers, Alight, Inc. shows a stark contrast; Box, Inc. is rated attractive with a P/E of 22.48 and an EV to EBITDA of 55.91, while ASGN Incorporated is fairly valued with a P/E of 14.13 and an EV to EBITDA of 9.09. Furthermore, Alight's recent stock performance has been poor, with a year-to-date return of -22.25%, significantly underperforming the S&P 500's gain of 2.44% in the same period.