Is Alkami Technology, Inc. overvalued or undervalued?

As of 4 August 2021, the valuation grade for Alkami Technology, Inc. moved from does not qualify to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued given its high Price to Book Value of 9.39, a negative EV to EBITDA of -107.02, and a negative ROE of -9.86%. In comparison, Clearwater Analytics Holdings, Inc. shows a more favorable P/E ratio of 12.49, while EverCommerce, Inc. has a risky valuation with a P/E of 47.08, highlighting the challenges faced by Alkami in its sector.
Despite a strong 3-year return of 77.46%, which outperformed the S&P 500's 70.41%, the year-to-date return of -27.67% suggests significant struggles relative to broader market performance. Overall, Alkami Technology, Inc. is considered overvalued based on its current financial metrics and peer comparisons.