Is Altice USA, Inc. overvalued or undervalued?

As of 10 February 2021, Altice USA, Inc. has moved from a valuation grade of very expensive to risky, indicating a significant downgrade in its perceived value. The company is currently considered overvalued, especially given its negative P/E ratio and a price to book value of -1.94. Key ratios such as the EV to EBITDA at 7.79 and ROCE at 6.65% further illustrate the challenges the company faces in generating returns relative to its capital employed.
In comparison to its peers, Altice USA's valuation metrics are concerning. For instance, Lumen Technologies, Inc. has a less negative P/E of -8.05 and an EV to EBITDA of 5.85, while IDT Corp. stands out as attractive with a P/E of 18.33 and an EV to EBITDA of 12.45. Additionally, Altice's stock performance has lagged significantly behind the S&P 500, with a year-to-date return of -15.35% compared to the S&P 500's 2.44%. This combination of poor financial ratios and weak stock performance reinforces the conclusion that Altice USA, Inc. is overvalued in its current state.