Is Altice USA, Inc. overvalued or undervalued?

As of 10 February 2021, the valuation grade for Altice USA, Inc. moved from expensive to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued given its negative P/E ratio and a price-to-book value of -1.94, which suggests that the market is pricing the stock above its tangible assets. Additionally, the EV to EBITDA ratio stands at 7.79, which is relatively high compared to peers like WideOpenWest, Inc. at 6.21, indicating that Altice may not be generating sufficient earnings relative to its enterprise value.
In terms of peer comparison, Altice's EV to EBIT of 16.01 is higher than Consolidated Communications Holdings, Inc. at 10.57, further supporting the notion that it is overvalued. The company's recent stock performance shows a 1-week return of 11.52% compared to the S&P 500's 1.05%, but over longer periods, such as 3 years and 5 years, Altice has significantly underperformed the index, with returns of -68.34% and -89.68%, respectively. This long-term underperformance reinforces the view that Altice USA, Inc. is currently overvalued.