Is Alta Equipment Group, Inc. overvalued or undervalued?

As of 8 May 2024, the valuation grade for Alta Equipment Group, Inc. has moved from expensive to risky, indicating a deterioration in its perceived value. The company appears to be overvalued, particularly given its current Price to Book Value of 3.53 and an EV to EBITDA ratio of 7.83, which suggests that investors are paying a premium relative to its earnings potential. Additionally, the ROE stands at a concerning -115.00%, highlighting significant inefficiencies in generating returns for shareholders.
In comparison to its peers, Alta Equipment Group's metrics are less favorable; for instance, CrossAmerica Partners LP has a P/E ratio of 8.77, while Hudson Technologies, Inc. boasts a fair valuation with a P/E of 24.38. Furthermore, over the past year, Alta Equipment Group has returned 11.89%, which lags behind the S&P 500's return of 17.14%, reinforcing the notion that the stock may not be a compelling investment at its current price.